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Financial planning
Mesothelioma is a serious illness with many difficult challenges. Yet many patients, upon learning they have mesothelioma, may push aside concerns about their personal pain. Instead, they focus on how their families will survive the mounting medical bills and lost income that go hand-in-hand with mesothelioma. Since we tend to think of mesothelioma as a disease that happens “to other people,” very few of us have a financial plan in place that would provide adequate medical care and support for our families in the wake of a life-threatening illness.
I Have Mesothelioma - What Do I Do Now?
No matter what your current financial situation is, there are steps you can take now to prepare for the difficult road ahead. You may want to consider retaining the services of an experienced attorney who works with people who have mesothelioma. A legal professional or a financial advisor can assist you by helping to identify resources you may not have considered.
Get the Whole Financial Picture
Before you begin to determine how you will pay your bills, the first step is to take stock of what you own (your assets) and what you owe (your liabilities). The difference between the two tells you where you stand now.
Next, list the amount of monthly income you receive and where it comes from, along with how much you pay in expenses every month. Take the information you’ve gathered with you when you meet with your legal or financial advisor.
Depending on your circumstances, your advisor may recommend a number of different actions to help pay your medical bills and living expenses, including some of the following.
- Liquidate your low-earning assets – Money market funds, CDs, and bonds fall into this category, and you should be able to liquidate them without significant tax implications.
- Liquidate stocks and mutual funds – Selling higher earning assets could have tax consequences, but if you need the cash to fund your medical care, the tax implications may seem insignificant.
- Borrow on margin – Borrowing against stocks held in your brokerage account may or may not be a good idea in your circumstances. Proceed with caution and talk to your advisor before you move forward with this one.
- Tap your retirement accounts – Remember, though, that even though you will not have to pay a penalty on early withdrawals from a retirement account due to your disability, you will still pay taxes on the amount you withdraw, and the rules will vary according to the type of account you have. Your advisor can help you decide the best way to draw cash from your retirement account.
- Borrow against your home equity – If you already had a home equity line of credit when you became ill, this may be the time to put it to use. Interest on home equity loans is relatively low and may be tax-deductible. If you don’t already have an equity line of credit, however, it may be hard to open one without proof of current income.
Other potential cash resources include life insurance policies with a cash value and any family members who are in a position to assist you. But before you consider riskier options – like taking out a reverse mortgage or a life insurance loan, or maxing out your credit cards, for example – be sure to talk with your advisor.
Compensation for Asbestos Victims
As an individual with mesothelioma or other asbestos-related disease, you may be entitled to financial compensation from the party responsible for your asbestos exposure. An attorney experienced with mesothelioma cases can explain your legal rights in-depth and answer any questions you may have. If you’re ready to speak to someone about your potential claim, please complete our free case evaluation form today.
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