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Health and Finances: 10 Myths... Page 2
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MYTH NUMBER 5: My health insurance continues when
I'm on medical leave.
Reality:
- This may be true while you are on short-term disability. But, disability lasting
for an extended period may create the need for converting to C.O.B.R.A. in order to
continue health coverage.
- This is often an overlooked expense that eats away at the money put away in savings.
My advice:
- Investigate your company’s guidelines regarding payment for health coverage during
an extended illness.
- Have additional money put aside to pay for COBRA.
MYTH NUMBER 6: I can rely on unemployment
insurance.
Surprise!! Unemployment benefits are NOT payable if you are unable to work, or look
for work, due to disability!
By definition you are not unemployed, you are unemployable.
My advice:
- Check with your state’s Employment Development Department to get the correct
information.
MYTH NUMBER 7: I am eligible for social security.
Filing for Social Security benefits is a must for those who fear their
disability could be long term or permanent. But, benefits are far from guaranteed.
Keep in mind that:
- More than 90% of all claims are denied on the first attempt. Often, a hearing is
necessary and an attorney is advisable.
- It can take months or years for Social Security to make a final determination regarding
eligibility.
- NO benefits are paid during the determination period.
My advice:
- Find out about Social Security as soon as you suspect your disability may be long-term
or permanent.
- Apply right away.
MYTH NUMBER 8: I have my savings and a 401(k) plan.
Nothing eats away at savings like an illness. You must anticipate the costs of
CO-payments for prescriptions, doctor visits, and cost of insurance continuation.
My advice:
- Check with a qualified tax advisor and financial advisor to determine if there are ways
to protect your savings in the event of a long-term illness.
MYTH NUMBER 9: There are many state and federal
programs available.
Many of these services may not be available, or provide financial assistance during a
medical emergency.
My advice:
- Determine what services are available through your state, and the eligibility
requirements.
MYTH NUMBER 10: There is nothing I can do to
prevent this potential disaster.
There are a variety of things that can be done to protect your savings from financial
ruin:
- Review your financial portfolio periodically with a financial planner.
- Evaluate your insurance needs, and consider adding disability insurance to cover your
car loan, mortgage and credit card payments.
If I had the benefit of foresight, it is possible that my financial disaster could have
been avoided by the advice I’m passing along now. If reading of my experience can
prompt even one person to take another look their financial plans for the future I will
not consider it a waste.
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