No one is a stranger to injury, although some are likely to suffer minor ones rather than major ones. In a best-case scenario, an injury will leave you with a few scrapes and bruises and a little less money. In a worst-case scenario, an injury can paralyze both you and your bank account.
Talk about adding insult to injury! The cost of an injury goes far beyond primary expenses like drugs and other medical supplies. Its impact on personal finances is especially profound in the four ways described below.
Whatever the cause and nature of your injury, the most prominent and urgent cost will be medical bills. Depending on the circumstances around your accident, you may need to pay those bills yourself. If you don’t have health insurance, that means parting with a lot of money from your savings.
For some injuries, like slips and falls, you may be able to get someone else to foot the bill. According to diamondlaw.ca, if you prove the fall resulted from the property owner’s negligence, you can file a claim for them to pay the medical bills.
Time Away from Work
With injuries that require spending time in a hospital or recovering at home, you won’t be able to go to work for a while. In essence, that means you’ll lose your income for the duration of your recovery period. If your injury is severe, you might not return to work ever again.
Even though you won’t have money coming in, your expenses don’t stop. You’ll still need to pay rent, buy food, and get medical supplies. In short, you’ll still need to spend money even if you’re not making any.
Most people survive using their savings. A few dollars out of the children’s college fund and some more from the money you were saving for a car. If the injury takes too long to heal, by the end of it, your finances will be in pretty bad shape.
If your finances aren’t so good, to begin with, your injury will be a slippery slope into debt. In most cases, you can’t help it. You’ll need to find a way to afford necessities while you recover from your injury, and that may mean loans or some overdrafts on your credit cards.
Before long, you may find yourself with a mountain of debt. The longer your recovery period, the higher your debts go. If anything, that will only make it harder to recover.
A car crash, fall, or some terrible mishap with workplace equipment can leave your finances in a terrible place. Different types of personal injuries affect your capacity to earn income and deal with a massive blow to the money you already have.
If you invest in proper health insurance before your injury, the impact on your finances won’t be so bad. Other ways around it include filing injury claims where possible and learning to manage your finances after injuries.