Financial Plan for differently abled dependents

As a family, we go through a cycle where an individual first gets married, has children, for whom we plan to provide good living and education, make them independent- both emotionally and financially and then look forward to our own sunset years with our spouse. For every stage of life we plan and try to match our income with the respective goals. However, there could be situation where an individual is incapacitated to be on his own or to lead an independent income life;thus our responsibilities do not end. The discussion in this article mainly focuses on dependency due to certain physical or mental disabilities.

As per Person with disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, a disability under the act is defined is person suffering from:

• Blindness;
• low vision;
• leprosy-cured;
• hearing impairment;
• loco motor disability;
• mental retardation;
• mental illness

When we have a dependent in our family, who suffers from this kind of disability we need to make provisions for the dependent in our working age, to ensure that they are never financially weak at any point of their life. So, when we are planning for the financial security for the dependent, we need to take care of following aspects:

·   Cash flow Amendment – When a disability is discovered at an infant stage, it is natural that as parents we want to manage all the responsibilities of your child however, as the child grows he might need external support like a medical attendant or home maid to attend to their needs. So, when we plan our expenses we need to include expenses like medical expenses, expensive treatments and external help or even consider their survival expenses as they may outlive you.

· Plan for it as immediate goal- Treating the dependency survival goal is similar to our own retirement goal, which is equally important and needs to be prioritized over any other goal planning.  

· Select a right guardian – Appoint a third person as guardian who can take decisions in absence of parents. This will create a buffer in case of any important decision to be taken if we are not around.The decision should be made legally and well documented to avoid mayhem in later life. So, if you have made provisions for the dependent you are ensured that there will be someone to execute the plan for you. It is important to note that after 18 years of age, if you need to provide for adult, you need to apply for guardianship even if you are his parents.

·  Develop a business for them- Disability doesn’t deter any human being from adapting alternative skills to sponsor their own expenses. It is recommended that you work towards developing their other sensory skills and identifying them at earlier stage. Today, there are various provisions made by government to reserve work quota or give concessional loan rates for differently abled people. It is recommended to be an active member of various self help groups of people suffering of similar disabilities and join hands to start a small venture. This will ensure that a feeling of self dependence is created in the dependent and a life time regular income is generated.

In the next article, we will discuss the various areas where an individual can invest to save for his financial dependents or possible means to secure their lives.

 

Regards,

Saarthi Financial Planners
www.saarthifp.com