An unexpected accident or illness that prevents us from working can happen at almost any time. How well do you understand your needs and resources? When you must miss work for more than a few days or weeks, what financial resources are available to help pay your bills? Many believe that workers’ compensation or Social Security Disability Insurance will replace a portion of their paycheck. However, that may not be true.

Assess Your Needs

The first step is understanding all your expenses needed to sustain your current lifestyle—from groceries and electric bills to online subscriptions and credit card payments.

• Evaluate your current financial situation, including monthly expenses, debts, and savings. Consider all fixed and variable costs to understand your financial situation clearly.
• Determine any disability benefits available through your employer, whether employer-paid or voluntary, payroll deduction options.
• Determine how long you could sustain your current lifestyle without your income. This includes emergency funds and any potential cuts of discretionary spending.

Many people in all income brackets live paycheck-to-paycheck and may not understand how precarious their financial situation is.

A key question is whether or not you have disability insurance.

Many people don’t pay much attention to employee benefits beyond medical and dental. If you’re unsure you have disability income insurance, ask your employer. Find out if your employer provides disability coverage through a group disability plan, either STD or LTD, or makes disability benefits available through payroll deduction. If you have it, great! Take the time to learn more about your policy’s terms to be sure you have appropriate coverage. 

No disability insurance?

If you experience an illness or injury that prevents you from working, you face the loss of your income for an extended period. Here are some other financial resources to consider:

• Employer Sick Pay. Some employers offer sick pay programs for their employees during tough times. Reach out to your human resources manager to explore your options and benefits.
• Personal Savings and Emergency Funds. Leverage your savings or emergency funds to bridge the financial gap during recovery. If you don’t have an emergency fund, now is a good time to start one.
• Workers’ Compensation (if applicable). If your disability arises from a work-related incident, you may be entitled to workers’ compensation benefits, including medical care and income replacement. Be sure to talk to your employer as soon as possible.
• Social Security Disability Insurance (SSDI). If you’ve contributed to Social Security, you might qualify for SSDI benefits due to a medical condition. Be aware that there is usually a six-month waiting period for benefits to begin, so take action now to start the application process.
• Supplemental Security Income (SSI). If you’re facing a disability with limited income and resources, SSI can provide essential monthly payments. Check your eligibility and apply to secure the support you need.
• State Disability Insurance (SDI). Some states offer disability insurance programs that provide income replacement for those temporarily unable to work due to non-work-related disabilities. Contact your state insurance agency to find out more.
• Nonprofit and Charitable Organizations. Numerous nonprofit organizations are dedicated to helping individuals with disabilities. Look for these resources for potential financial aid and support—they’re here to help.
• Crowdfunding. If you’re facing overwhelming medical expenses, consider using crowdfunding platforms to rally support from your community. Share your story and take a step toward financial relief.
• Last Resort Income. Explore options like credit cards, second mortgages, or home equity loans to cover expenses if necessary. Don’t hesitate to reach out to family and friends for assistance – they may be able to help you through a challenging disability.

If you are disabled, you are encouraged to explore all available options and consult with your employer, a financial advisor, or a disability advocate to understand your resources and rights.