India has 2.68 crore+ disabled people.
This figure was stated in the 2011 census, identifying that 2.21% of the total Indian population is disabled. For such families, you will need a unique financial plan. In this blog, we will guide you through every aspect of that financial plan. Secondly, we will also suggest you take a short-term personal loan to manage your expenses.
You will be surprised to know that in 2008, 3.9% of children were disabled, and in 2019, the tally has become 4.3%. Hence, you need to have a detailed financial plan if you are a part of a special needs family or want to help such a family.
Plan Early
You should start planning your finances the moment someone in your family starts having special needs. In such situations, families often choose to wait for some years in the hope that their family member will be cured.
Secondly, if you live in a nuclear family, then you should be better prepared than any other family. For example, your child has some special needs and requires constant care and assistance. However, his/her life span is not impacted by the said disability. In such a case, you need to plan even for your child’s life after your demise.
Make Plans for 2 Generations
For example, you have ₹2 crore in your bank account right now. This much money is enough to sustain your life. However, what if you have some urgent expenses and your child requires some expensive treatment?
And god forbid, if there’s a sudden demise of the child’s parents, would the child have enough money to sustain himself? That’s why it’s imperative to plan the financial needs of 2 generations, the parents and the children.
Financial Support System for Special Needs Children
You have to be utterly honest with yourself and ask whether your child can handle his/her expenses. Generally, a child with special needs is unable to make sound financial decisions even when they enter their early 20s.
In such a case, you need a guardian who will take care of your child’s finances. You can reach out to any friend or relative who can take care of your child’s needs.
How Much Care Will Your Child Need?
You have to thoroughly assess the extent of your child’s disability. You have to test and see whether your child will require minute care or just supervision. However, you should also consider that once your child starts growing, the complications will become more severe.
Investment Corpus for Emergency Needs
Instead of just saving money, you need to build a source of passive income. You can even reach out to your family and friends to contribute towards that corpus. The earlier you start, the more money you will invest.
While planning ‘How much should I invest?’ you have to consider all these questions.
- What are your child’s monthly financial needs?
- Short-term equipment needed for your child’s treatment
- Is your child’s disability curable?
- Effect of inflation on your investment corpus
Will and Trust
Check the government policies before transferring all your wealth to your child’s name. That’s because, in some countries, the government doesn’t extend benefits to special needs children if they have more than a certain amount of money.
Conclusion
While most couples would just need to plan their family, you have to go above and beyond to make sure that your child has a safe and secure future. However, starting financial planning is the key to making this dream a reality.
If you are still reading this blog, then chances are that your child won’t end up begging other people for money.