By Ed Carter

Adults with disabilities face several financial challenges that can make it difficult to plan for a secure future. According to a report by the National Disability Institute, people with disabilities are significantly more likely to make a low income, be late on mortgage payments, skip medical treatments, and have difficulty paying bills. Fortunately, there are many avenues for financial assistance—as well as smart financial habits you can adopt—that will help prepare you for whatever the future brings.

Your Financial Assistance Options

People with disabilities have various options for financial assistance, including Medicare and Medicaid. In special circumstances, people under the age of 65 qualify for Medicare and can take advantage of all the health care benefits that our seniors enjoy. To qualify, you must first receive 24 months of Social Security Disability benefits. If you meet the eligibility requirements for Social Security Disability, you will be automatically enrolled in Medicare Parts A and B.

Those who do not qualify for Social Security Disability can still get Medicare by paying for both Parts A and B. In this case, you will need to sign up for Medicare by contacting the Social Security Administration or applying online.

People under 65 with a disability also have Medicare Advantage options. Medicare Advantage plans are not provided by the government, but by private insurance companies. These plans provide additional benefits on top of the health services covered by Medicare. A special type of Medicare Advantage plan, called a Special Needs Plan, can help people cover the costs associated with their particular disability. This allows for more personalized coverage over regular Medicare. Keep in mind that Medicare Advantage plans vary across the country, so be sure to search for plans available in your state.

Medicaid is another viable healthcare coverage option for people with disabilities. Medicaid is reserved for low-income individuals and covers some additional services that Medicare does not. If you’re eligible for both Medicare and Medicaid, you can receive benefits from both programs. Head over to Caring.com to learn more about your Medicaid eligibility.

Opening an ABLE Savings Account

ABLE savings accounts are available to people who develop a disability before the age of 26. You can attach a debit card to this account or use it as an investment portfolio—the interest you earn in this account is tax-free! Plus, money in the account does not affect your eligibility for Supplemental Security Income (SSI). You can use the money in your ABLE account to fund certain qualified expenses, such as education, transportation, medical services, and assistive support equipment. People receiving SSI are automatically eligible for this account. Those who are not will need to provide a letter from their doctor.

Managing Your Money with Banking Services

If saving money is challenging, take advantage of online banking services. These services allow for the direct deposit of disability benefits, automated money transfers to savings and retirement accounts, and pre-authorized debits for paying bills. These services can prevent you from spending money that should instead be put toward bills and savings. Account fees can make it more difficult for you to save, so try to find a zero-fee bank account.

Creating a Budget

Budgeting is essential for anyone on a limited income. A budget will help you allocate your income toward paying off debts and building up a savings fund for the future. Start by writing down your total monthly income. Then, track all of your expenses for a couple of months. Google Sheets is helpful for keeping your budget organized, and it’s free! Once you’ve done this, take a look at your expenses, and determine if there’s anything you can cut out—this money may serve you better in a savings plan. Investopedia recommends using an online retirement savings calculator to give you a general idea of how much you should save each month.

Making Sure Your Family Is Taken Care of

It’s not easy to think about, but it’s a good idea to make plans in case you pass unexpectedly so that your family is financially secure. Taking out a life insurance policy can provide your family financial resources should the unexpected happen. Life insurance benefits can be used for living expenses and to pay off debts. An alternative to life insurance is final expense insurance. While this type of insurance doesn’t pay out a large sum, it does cover funeral costs and can help pay for other expenses such as medical bills. 

Although people with disabilities are eligible for financial assistance and healthcare coverage, saving money and planning for the future is still extremely important. Planning ahead will help you afford the care you need later in life. Plus, being financially secure will allow you to enjoy a greater quality of life today!