Recently a friend’s family member of mine became ill. They had a stroke that has affected their everyday life in a major way. The positive side of this medical incident is that he is alive and he is doing well. He is still able to move and function but his mind is just not the same. His main obstacle is his vision impairments that are a complication of the stroke. Besides his medical recovery, his finances are a big concern for his family. He owns his own business and is the sole provider for his family. Since he can’t see properly and his brain is still healing, he can’t work. If he can’t work, what will they do financially as a family? This really has me thinking about properly setting up a family to survive in a crisis.
Having a substantial savings is the key for a situation like this. Most people (including myself) think disability is easily accessible, but that is not the case. There are a lot of hoops to jump through to actually get disability. By having money saved you can at least survive while your situation is being assessed.
Obviously having a large savings is easier said than done, so what is a normal family to do? One option that comes to mind is Payment Protection Insurance or PPI. PPI is an insurance product that basically insures that your debt will be paid in the event of certain circumstances (i.e. death, illness, job loss). These plans are usually lumped in with debt like mortgages and credit cards. An additional fee is added to the payment each month to cover the cost of this insurance.
In this situation, this product sounds like a perfect fit. However, this product has caused a scandal throughout the UK. Consumers are being sold policies with their debt products without even knowing. Sources say that around 40% of PPI policy holders were not even aware of their policies! Because of this, there are businesses that can help you file claims to get back the money you didn’t even realize you were paying. I found this one site, http://www.lowfeeppiclaims.co.uk that offers a competitive low fee service that sounds quite appealing.
By having private disability insurance, you can ensure you and your family are taken care of in a time of crisis. It is a form of insurance that insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work. Like with any insurance, you are running the risk of shelling out money and never having to use it. This is a decision you have to make as a family to see if it is worth it. As you get older, this is something that may be a good option.
Overall, there are different options out there to cover you and your family during a medical crisis. The key is to acknowledge that it is a possibility and to plan for such incidents before it is too late.