3 Must-Have Money Moves for People With Disabilities

For those with disabilities, it is important to face your financial future with a plan. Guest author Ed Carter details three moves adults with disabilities should consider.

When you live with a disability, it can be daunting to face your financial future. After all, you want to be able to care for your family, budget for medical expenses, and ensure safe care when you need it. Texas Innovators presents some steps you can take toward planning for a better financial future, even while managing a disability.

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Plan for the Unexpected

Purchasing life insurance can provide help for your family if the unthinkable happens. It is a chance to provide for them, and it will give you and yours peace of mind in the interim. Principle life insurance types include term, whole, universal, and return of premium life insurance, and all offer benefits to your loved ones if you pass away.

Life insurance aims to replace lost income from your work or benefits. It can also cover final expenses like funeral and medical bills. Navigating life insurance policies can be complicated, though.

You can use an online calculator to determine how much coverage you need. Then, you can compare plans and rates to find the best deal that works for your lifestyle and family. Note that you may also need to undergo some tests and a medical exam to confirm your health status.

Of course, life insurance only covers so much. Another smart backup plan is final expense insurance. Final expense insurance addresses any leftover medical bills or funeral costs. With this coverage, you can help protect your family’s finances as they won’t need to pay out of pocket. Instead of trying to come up with extra funds while grieving, they can rely on your insurance coverage to handle everything.

Set Aside Money (Smartly)

While many types of insurance address your loved ones’ finances after your passing, you should also think about your own financial solvency. Setting aside money via a 401K, if you work, or through a savings account is beneficial for your future.

But often, such funds are not enough. And depending on the interest rate your savings account is earning, it could take years to grow your funds. At the same time, many government benefits—such as supplemental security income—are calculated based on your income and assets.

If you have a large savings account, this could count against you for determination purposes with federal or state benefits. To avoid such complications, consider a special fund to pay for medical and personal care, such as an ABLE account. As USA Today explains, these special accounts allow for savings without jeopardizing government benefits.

Think About Housing Ahead of Time

You might feel content to rent a home, but owning property might be a smart decision for your future. First, many programs help people with disabilities or limited income (or both) get into homes more easily. Plus, depending on property values in your area—plus the mortgage terms and rates—you may pay less than monthly rental values for a home.

Once you own a home and continue making the payments, you build equity in the property. That means that later in life, you can borrow against the value of your home. Taking out a