5 Valuable Financial Tools for People With Disabilities

This year marks the 30th anniversary of the Americans With Disabilities Act of 1990. The ADA was intended to remove many of the obstacles that people with disabilities face in their daily lives. Significant strides have been made under the ADA, yet you still may face barriers to participating fully in the mainstream financial marketplace if you use a wheelchair or have other limitations. The following tools are available to help make your financial path a little easier to navigate, even with a disability.

1. Leveraging Value in a Whole Life Insurance Policy

When you borrow against the value of a whole life insurance policy, it is called cash flow banking. This type of loan is already collateralized, and you do not have to pay back the principal, only the interest. It allows you flexibility of spending and ease of access. There are also tax advantages involved. You build cash value in your whole life insurance policy by making your premium payments, which then gives you more borrowing power. If you are trying to achieve independence and need to purchase an assistive device to do it, this may be a viable option for financing the purchase.

2. ABLE Account

You are probably aware of the benefits of putting aside savings for the future. However, you may think that it is not possible for you to build up savings and retain your eligibility for government benefits programs, such as Social Security, Medicaid, or SNAP. However, the Achieving a Better Life Experience Act allows you to participate in saving while retaining your benefits eligibility by setting up an ABLE account.

An ABLE account is a new type of savings account available to people with significant disabilities. You can receive gift contributions from friends and family into your ABLE account as well as make contributions yourself. Savings in your ABLE account do not affect your ability to receive government benefits. This means that you can have an ABLE account worth tens of thousands of dollars and still retain eligibility. You can use your ABLE account savings to fund transportation, accessible housing, health care costs, education, or any expense related to living with a disability, no matter how basic.

Individual states each have their own rules for operating ABLE accounts. Some states allow outside residents to participate in their program, so you do not necessarily need to enroll in the state where you live if another state's program would suit your needs better.

3. PASS

Plan to Achieve Self-Support is an incentive program from the Social Security Administration that supports your efforts to return to work while still receiving benefits. By participating in PASS, you could save money to fund education or training that you need for your chosen work path by using income or assets. In the meantime, you can still receive your Supplemental Security Income while advancing your career.

4. Financial Education

It can be difficult for people with disabilities to obtain financial education despite the importance of building your financial wellbeing with the necessary knowledge and skills. Fortunately, there are financial education resources and tools available to people with disabilities. If you are a member of a disability organization, it might be able to recommend a program to you, or you may be able to find one on your own. The Federal Deposit Insurance Corporation, more commonly known as the FDIC, is best known for protecting consumers by insuring banks against catastrophic losses. However, it also administers a financial education curriculum, accessible to people with disabilities, called Money Smart.

5. American Job Centers

Also called One-Stop Centers or Workforce Centers, American Job Centers operate under the U.S. Department of Labor to offer multiple types of assistance to people seeking employment under one roof. In addition to job listings, AJCs also offer career counseling and training referrals. AJCs are accessible to people with disabilities but do not cater to them exclusively.

A disability should not prevent you from earning and managing your own wealth to the extent that you are able. Tools such as these can help you to achieve financial independence.