6 Financial Tips on What to Do If You Get Ill or Long-term Sick

July 12, 2023

Coping with sickness isn’t easy. The struggle isn’t just physical. It’s financial too. Medical care costs can be high. Your savings might dwindle. Your earnings might take a hit if you can’t work. It’s a tough reality that underscores the importance of money planning.

Our blog is all about managing your finances when you’re unwell. Our goal is to help you lessen your financial stress.

Nobody wants a money crisis during a health crisis. This is doable even when you’re dealing with long-term illness. So, let’s explore some crucial steps. They will help protect your financial well-being while you’re on the path to recovery.

Financial Tips For Long-Sick or Ill People

1. Review and Understand Your Insurance Coverage

Health insurance is a key player in managing medical costs. But understanding your policy is crucial. Make sure you review it thoroughly. Learn what it covers, from hospital stays to medications. It might also cover doctor visits and specialised treatments.

Understanding your policy isn’t always straightforward. This is where the insurance provider can help. Knowing the extent of your coverage is vital. You’ll know what services are covered fully. You’ll also know which ones will require additional costs.

Being proactive is the key here. Before you need a medical service, check if it’s covered. Understand the terms of your policy. Know your co-pay amounts and the procedures for filing claims.

2.  Evaluate and Adjust Your Budget

Adjusting your budget is critical when you’re ill. Start by looking at your current financial situation. Are there expenses you can cut?

Prioritising your spending is important. Focus on the essentials first. These include healthcare costs, utilities, and basic needs. Make sure you have enough for these. After that, see what’s left for other things.

Healthcare is obviously a top priority when you’re sick. Your revised budget should reflect that. This could mean more funds for medication, doctor visits, and treatments.

Next, look at your utility bills. Electricity, water, gas – these are all necessary. Make sure your budget covers them. Then, consider your basic needs. This includes food and other daily essentials.

Now, look at non-essential spending. Eating out, entertainment, unnecessary subscriptions – these can all be cut. Any funds freed up can go towards your healthcare costs.

3.  Explore Government Assistance Programs

When you’re unwell, government help can be a lifeline. These are made to help people who are sick or disabled. Plus, your state might have its own aid programs.

 

Program Name	Description	Eligibility Criteria
Employment and Support Allowance (ESA)	Financial support for individuals unable to work due to illness or disability.	Must be at least 16 years old, not receiving Statutory Sick Pay, and have limited capability for work.
Personal Independence Payment (PIP)	Financial assistance for individuals with long-term health conditions or disabilities to help with daily living and mobility costs.	Must be between 16 and state pension age, have difficulty with daily living or getting around, and meet the eligibility criteria.
Universal Credit	A monthly payment to assist with living costs, including housing, for individuals who are out of work or on a low income due to illness or disability.	Must be over 18 (or 16-17 in certain circumstances), have limited income and capital, and meet the eligibility criteria.
Disability Living Allowance (DLA)	Financial support for children and adults with a disability or long-term illness to assist with additional care and mobility needs.	Available for individuals under the age of 16 (DLA for children) and for those aged 16 to state pension age (DLA for adults).
Carer’s Allowance	Financial support for individuals who provide care to someone with substantial caring needs due to illness or disability.	Must be at least 16 years old, spend at least 35 hours per week caring for someone, and meet the eligibility criteria.
Attendance Allowance	Financial assistance for individuals aged 65 or over who have a physical or mental disability and require help with personal care.	Must be aged 65 or over, have a physical or mental disability, and meet the eligibility criteria.

 

 

Applying for these programs means showing your health condition. You’ll need to share your medical history and any proof of your illness. Being thorough with your application is key. The more proof you have, the better your chance of getting help.

Don’t ignore government aid when you’re unwell. These options can provide much-needed financial relief. It’s worth exploring these aids. They can lessen the financial pressure of dealing with an illness.

According to the Department for Work and Pensions (DWP), the number of people claiming ESA and UC due to sickness or disability increased by 9.7% and 36.5%, respectively, between February 2021 and February 2022. The number of people claiming PIP increased by 5.8% between January 2021 and January 2022.

4.  Communicate with Creditors and Lenders

Reaching out to creditors and lenders is vital when you’re sick. It’s wise to let them know about your situation. You might be surprised at the flexibility many are willing to offer.

Start by explaining your financial situation. Are you unable to work due to your health? Are medical costs affecting your budget? Be honest and clear.

Forbearance and deferment both allow you to pause payments for a while. They differ in how interest is handled during this break. It’s crucial to understand these differences.

Loan modifications change the terms of your loan. When communicating, remember to be proactive and respectful. Keep all your conversations and agreements documented. Having a paper trail is crucial. It supports your case and can help resolve any future disagreements.

5. Seek Financial Counselling or Assistance

Obtaining expert financial assistance might be helpful while facing health issues. You may get individualised guidance from financial counsellors or consultants.

Financial advisers have experience with financial issues. They may provide advice on finances, debt, insurance, and even government assistance. As a result, you may base your judgments on information rather than fear.

There were 2 million employees who received SSP, with an average weekly payment of £95.85. The total expenditure on SSP was £9.9 billion.

The National Foundation for Credit Counseling (NFCC) is a good place to start. They help individuals find charitable organisations that provide free or inexpensive assistance.

You could also research regional nonprofit institutions. Some provide financial guidance. Others may even provide cash help. Just keep in mind that selecting a reliable provider is essential. Verify their credentials and previous client comments.

6. Get Loans

When you’re unwell, loans can be a lifeline. Loans for people on benefits, often called “benefit loans,” are made for this purpose. These could be personal loans or even loans specifically made for disabled individuals.

Personal loans are a standard form of benefit loans. They’re usually unsecured, so you don’t need any collateral. You can use them for any cost, whether healthcare or everyday needs.

There are also special loans for disabled individuals. These loans are tailored to meet their particular needs, with perks like lower interest rates or flexible repayment schedules.

A notable example of a lender offering such services is Florafinance. They are recognised for providing loans apt for those on benefits. They consider the unique circumstances of those with illnesses or disabilities.

Before applying for any loan, knowing the eligibility criteria is key. Lenders like Florafinance often look at your income (including benefits), credit score, and repayment capability.

Benefit loans, including those from Florafinance, can offer financial relief to those with illness or disability. But, understanding the loan terms, handling the loan wisely, and steering clear of predatory lenders is essential. This way, you can lessen your financial burden without creating new problems.

Conclusion

Taking charge of your finances during illness is essential. Don’t wait for problems to pile up. Start managing your money smartly and seek help if required. Remember, resources are available to provide you with financial stability during your health crisis.

Review your budget, explore assistance programs, communicate with creditors, and consider loans responsibly.

There are countless others in similar situations. You can and will maintain financial stability during your illness or long-term sickness. Stay hopeful, seek assistance, and take control of your financial health. It’s as important as your physical health.