Catastrophic Disability... are you prepared?

[Steve]

Edit: I just want to add this to the front of the thread. There are a ton of active threads on healthcare reform. That's not what I'm interested in here. The intent is to accept the world in which we live. Right now, with the laws we have currently in place. I was accused of trying to draw people into a debate on healthcare, which couldn't be further from the truth. I'm trying to avoid talking about healthcare reform and instead talk about what the realities of where we currently are.

I've worked with and around disability for a long time and am acutely aware of what happens to the average family when one person suffers a catastrophic disability. We're talking some medical condition (whether mental or physical) that results in the loss of a person's job for at least a year.

Statistically, about 1 in 5 people will suffer a catastrophic disability in their lives. In many cases, people prepare for health or untimely demise, but don't think at all about what might happen if you survive with a permanent disability.

In the current climate, there are two camps. Basically, those who believe we need to prepare for ourselves and those who believe that we need to federalize these programs and provide in some way for everyone. And of course everyone in between. With the number of conservatives and libertarians on these boards who advocate preparedness and self sufficiency, I'm very interested in how many people have thought seriously about the subject and taken appropriate steps to prepare for the worst.

So, what about it?

How many people here have thought about and prepared for this? Have you purchased supplemental disability insurance? Do you have adequate savings? Is there a personal support network that you have available? Have you given it any thought at all?

 

[Bruno@MT]

yes, I am prepared. My socialized medical insurance covers all treatmens which are medically necessary or justifiable (treatment of all recognized ailments or injuries). I also have an empoyer paid for additional insurance which covers all non essential things like cosmetic surgery as part of the rehabilitation process, cosmetic dental care, upgrading to single hospital, rooms, etc.

I know people whose kid had complicated surgery 30 times in her first year and a half. In the end, she pulled through. It didn't cost them much outside of time and energy.

I also have a short term loss of income insurance though I don't know the details. It came with the private insurance from my employer. And of course, we save some money every month (at the beginning). So all in all, we are as practically prepared as we can reasonably be.

 

[Steve]

yes, I am prepared. My socialized medical insurance covers all treatmens which are medically necessary or justifiable (treatment of all recognized ailments or injuries). I also have an empoyer paid for additional insurance which covers all non essential things like cosmetic surgery as part of the rehabilitation process, cosmetic dental care, upgrading to single hospital, rooms, etc.

I know people whose kid had complicated surgery 30 times in her first year and a half. In the end, she pulled through. It didn't cost them much outside of time and energy.

I also have a short term loss of income insurance though I don't know the details. It came with the private insurance from my employer. And of course, we save some money every month (at the beginning). So all in all, we are as practically prepared as we can reasonably be.

Thanks for the response, Bruno. Are you in Canada or the US?

And just to answer my own questions, my wife and I save a modest amount of money, and we each pay for supplemental disability insurance that will cover the difference between our current income and what disability will pay that is designed to keep us going until a medical retirement kicks in. We're also lucky to have a large family, so if the worst happens, I believe that my family would come through for us.

I don't know if it's enough, but statistically speaking, it's a lot more than most.

 

[KELLYG]

I am working on having 6 months of salary in savings. I have good insurance, short term disability, long term disability, and a cancer insurance policy. I also have friends and family that I can count on if the chips get down, as I would help them.

 

[Steve]

I am working on having 6 months of salary in savings. I have good insurance, short term disability, long term disability, and a cancer insurance policy. I also have friends and family that I can count on if the chips get down, as I would help them.

That's cool, Kelly! Short and Long Term Disability often pay at about 60% of your current wage, but if you have savings, that's awesome.

So far, I'm really surprised that people have given it some actual thought. As I said before, statistically, disability is an area that most people just don't think about.

Thanks for the reply.

 

[Stac3y]

I am hanging onto solvency by the skin of my teeth, partly due to hospital bills incurred by my husband when we were out of the country; partly due to his recent career change and the lack of income while he was preparing for it. If one of us becomes disabled and is unable to work, we are simply f****d. We do have some supplemental disability insurance from work, but not enough to compensate. We can't save money; we don't have any to save. With our stagnant incomes (I'm a librarian; he's a teacher), and the rising cost of living, it will be a long, slow haul just to get to where we can save anything at all. Right now, we just have to concentrate on paying down debt.

And people wonder why I like hitting things so much.

 

[Tez3]

I have no intention of surviving a catastrophic disability.

 

[Carol]

Disability was something that I thought of from the moment I began my professional career. Perhaps I had some incentive (working around high voltage equipment) but I can't think of a point in my career where that hasn't been on my mind.

I did have something happen to me when I was younger that took me out of the workforce for awhile. I forget whether I was out for a full year because I went back into the work force doing part time and temp work. I know it was over a year before I went back to work full-time.

I was prepared on just about all fronts and got through it reasonably OK. There were aftershocks though. I didn't (still haven't) rebuilt my career back to where it was. I was divorced and that introduced a whole knew set of challenges.

So, now? I'm healthy, I'm working a job I love. I have four weeks paid vacation banked (which is the max that the company permits). The company's STD and LTD plans are very good, the supplemental insurance is not (so I don't have it).

The other tactic I take is education. I have attended UMass on and off for over 10 years to keep my skills current and keep myself employable. This can be a very valuable benefit for the folks that have tuition reimbursement at work. I have never been able to take advantage of it. When I had the benefit, the job was too demanding for me to study. When I have the opportunities to study, I didn't have, or don't have the benefit.

But I don't have a family of my own. My savings haven't been built back up. I look at...what would happen if I have to pull myself through yet another crisis? I think if that happened, I would likely be looking at relocating to North Carolina and moving in with my mom or my sister.

Many financial types will say that buying your own home is one of the best investments you can make because its an investment you use (by living in it). I would love to own another condo, I lost mine in my divorce, and its a buyer's market right now.

But if I did that...then that weakens the strength of one of my safety nets (my NC relatives). So, I don't own my own home, I negotiated a longer-term lease with my landlord to keep my living expenses as fixed and predictable as possible. My car is 7 years old and is at the point to where its costing me money to keep it on the road, but patching it together is cheaper than buying new, and I can get by without a car if I really had to. I've made a habit of doing my errands on foot, and I'm hoping that will help my car last a wee bit longer.

I really don't know what to say about my situation now. Its not what I expected, or where I wanted to be. But I appreciate what I do have, immensely.

 

[Jenny_in_Chico]

Way to be a Debbie Downer, Steve. Jeez. Let me live in my little "It won't happen to me" fantasy bubble a little while longer, ok?

 

[grydth]

steve, part of being prepared is knowing what your rights and options are. While insurance frauds love to play systems, it is amazing how many average, legitimate folks don't know what their rights are.

People should visit the websites of their local Workers Compensation Board... some honest folks lose their rights over not giving timely notice or filing on time. Ditto for disability benefits. If you have a union, take the time to see what your rights are - - - before you need them.

Before you buy private insurance - to include auto insurance - find out what is covered and what is not, and for how much. I once saw an amazing disability policy that was sold in a local factory - there was no way the company would ever have had to pay, everything was excluded.

 

[Bruno@MT]

Thanks for the response, Bruno. Are you in Canada or the US?
.

Belgium

It's not that we really put much thought into disability, it's just that the medical side of things is covered almost by default here. Aside from loss of income, a medical problem is just a medical problem, not a financial problem.

I am also a habitual saver. Mind you I don't mind spending money. I put a fixed amount into savings every month. A big chunk of what is left goes into the household account, and the rest is for car fuel etc. Whatever is left on the end of the month can be spent on whatever.

Big purchases are paid out of the savings account or when the tax refund gets paid, And I am adamant about never dropping between 6 months combined wages in savings.

 

[Flea]

I'm permanently disabled, and I didn't prepare for it. I knew I was sick and getting sicker, but it was a mix of optimism, denial, and an obsessive work ethic.

It is what it is, and I'm not beating myself up for it now. I had to stop working at 29, too young to have built up much substantial savings. Now I'm on Social Security. I would urge everyone to learn from my mistake - get as well insured as you can, because nobody can live on SSDI. It simply can't be done. And while you're at it, make sure your policy covers every imaginable malady, because insurance companies will try to squirm out of their obligations.

The other side of preparedness is to try to keep your hand in the professional world as much as you can. If you ever find yourself able to work again, many employers will discriminate against you. The EEOC really doesn't care. Anything you can do to keep any kind of resume going - volunteer work, keeping up with your old contacts - will make a difference.

My advice? Eat your vegetables, wear your seat belt, and don't get sick in the first place.

 

[Blade96]

my uncle suffered a work injury on his back that renders him unable to work. he has workers comp. His wife - my aunt works, but not very well, as she is disabled too (broke her foot) and gets around but limping badly. They do get enough that they live pretty well though.

 

[teekin]

Been there done that. Learned to walk, talk and read 2x in this lifetime. Wasn't 'spose to live, ride, run, walk, do a snap kick, deveople a wicked chop kick, learn to love drop Seionagi and a nasty version of Osotogari, fall in love with BJJ and Gi chokes, work on a decent left cross, and be able to hold down 185ers in kesseme. Fooled em all didn't we Drew? :cheers:
I don't think you can prepare. you can save all the money you want but you can not prepare for how it changes your life.

lori :samurai:

 

[Flea]

I don't think you can prepare. you can save all the money you want but you can not prepare for how it changes your life.

lori :samurai:

That's really beautifully put. Thank you.

I think that "not being able to prepare" is also what can make it a positive experience. A catastrophe can also be an adventure, one of life's greatest boot camps where you have the opportunity to prove yourself in ways you never imagined. That doesn't make it a good thing to become disabled of course, but it gives it some very positive dimensions.

 

[shesulsa]

We are financially prepared with our investments and insurance choices.

My husband works a high-risk job and has already suffered a permanent disability of his right hand (yes, he is right-handed). He broke his jaw in three places and it's a testimony to his constitution that he walked - literally - away from it to a pickup truck which took him to the hospital and that he even *has* his hand. Lately he has been a presence on the net, learning social networking, email and soon spreadsheet software. We have about three years to go before he's fully vested and can retire from that death trap he calls "work."

I'm trying to recapture that unused (hence lost) knowledge I had before so I can return to school for a degree in physical therapy.

As I said, we have good investments and good insurance and are F-R-U-G-A-L.

Important topic, Steve. Thanks for posting.