Breaking Down The Requirements, Changes And Cost Of Disability

Rushabh Desai was diagnosed with muscular dystrophy when he was 19 years old. In India there was no precise technology that could diagnose his disorder at the time. He had to go abroad. At 36 years old, Desai is no stranger to the difficulties, costs and changes that disability brings into life.

“I was in my last year of graduation, and I had many plans do much more. But life had to take a U-turn at that point of time,” he said. There were a lot of things that were unknown to him because of the rarity of the disorder.

“One needs to have the will power to come over it. There may be friends and families who are not supportive. I had to convince myself that if I don’t help myself, no one else will,” said Desai.

Navigating life and finances with a disability can be complex, but surely can be tackled with proper planning.

There may be certain costs, like hospital bills, that may be met by insurers, but a whole array of costs are out of insurance coverage.

"There is basic insurance that covers the expenses. There is no insurance that covers the ongoing expenses," Desai pointed out.

Purchasing a wheelchair or physiotherapy is not taken care of. A lot of assistance like a modified home is not covered, he said. These products are requirements that cannot be foregone for people with disability.

Desai brought the disabilities that accompany old age into perspective as well.

“We will all be disabled in the later stages of life. Taking risks in investment while one is young is important,” he said. There are costs and limitations that everyone will need to navigate through during the later stages of life.

Saving the most one can, by cutting down on luxury spending and investing this amount can be used to tackle these expenses that can come up in the later stages of life.

There is a huge gap between the coverage provided by insurers and the actual costs that a person with disability has to bear. The problem of cost stretches beyond the issue of coverage that insurance provided and extends to the accessibility to policy itself.

Desai talked about how insurance companies refuse to insure people who are already disabled. If you have a disability, usually, you won’t get insurance, he said.

Building an emergency fund, according to Desai, should not be limited to a few months worth of expenses, but should amount to a couple years of expenses. He also recommends building a passive income through investment as much as one can. Building a side business apart from a primary occupation can also be used to save more.

In the old tax regime, there were certain provisions for persons with disabilities. These provisions were under Section 80 U and Section 80 DD and these provisions are not included in the new tax regime.

Tax deductions can be claimed based on degree of disability, according to Desai. A government hospital can give a disability certificate after evaluation. This certificate can then be used to claim the provisions available.

There is also a Rs 500 monthly pension that can be claimed from the government. Though there are some provisions in place, the inclusion of the same into the new tax regime continues to remain a pressing need.