How to manage your finances after injury or illness
September 27, 2017
A major illness or injury doesn’t just have consequences for your physical health, it can also put a serious dent in your finances.
Here are some ways to minimise both the financial and emotional costs of illness and injury.
Take care of yourself
As if the emotional consequences of illness or injury aren’t bad enough, the potential financial burden only adds to the stress.
Family and friends can be a great support, but bear in mind that you can also contact a range of crisis support services that can help you through the emotional impact of serious illness and injury.
Check your entitlements
Are you eligible for workers, traffic accident or public liability compensation? How much sick leave have you accrued? Do you have disability or income protection insurance?
Remember to check with your super fund – you may have insurance cover that can assist with your ongoing expenses without even knowing it.
Can you access your super? If you are under your preservation age (ie. age that you can access your super), then there are some very limited situations in which you can withdraw a portion of your superannuation. If you have reached preservation age, your super may provide a useful financial buffer.
Draw up a budget
This may be difficult to do when you are unsure of future medical expenses and potential income, but even an approximate budget will help you plan for the future.
If your budget comes up short, see where you can find some savings.
Remember that hardship relief may be available from lenders and utilities.
Talk to your credit providers as soon as you become aware that you may have difficulty meeting payments.
Health, income protection, trauma and disability insurance all have a role to play in protecting you and your family from the financial impacts of illness or injury. They form the bedrock of any financial planning strategy.
If you’re young and fit, don’t assume that you’re immune from ill health. Even a 25-year-old can be prone to illness or an injury which could prevent them from earning an income.
Your ability to continue earning income is your most significant financial asset, thus the critical need to ensure it is protected.
If it’s been a while since you reviewed your insurances, now is the perfect time to go through them with a financial planner who can assist with ensuring you have an appropriate level of cover.
Are you fit and healthy, and just want to ensure that you and your family will be financially secure if illness or injury strike? Or do you need help in managing your finances through a current condition?
Either way, LDB’s financial planners can help. To find out more, call us on (03) 9875 2900 or fill out the contact form below.