Disasters can destroy jobs and incomes as well as lives and property. If you are unable to work because of a disaster-related injury or if your employer is forced to close temporarily, how will you manage financially? This section suggests steps you can take now so you are as prepared as possible for a disruption in your income.

Your Job
When preparing for the possibility of a disaster, you need to consider how it may affect your job. To get information from your employer about how disasters are handled, talk to your manager, the human resources department, the benefits director, or the payroll department. A larger corporation may even have an Employee Assistance Program (EAP) that can provide information.

What can I expect from my employer if there’s a disaster?
How a disaster is handled depends on the employer. Here are some questions to ask:

• Does the organization have a disaster plan? If so, what is it? If I’m unable to get to work after a disaster, will I continue to be paid? If so, for how long?
• If the business must shut down temporarily, will I continue to be paid? If so, for how long?
• Would I be able to use or substitute sick leave pay, vacation pay, or any employer-paid emergency assistance?
• Would I be eligible to collect unemployment compensation? If so, when?
• If I’m injured in a disaster, what medical and disability benefits does the company provide and for how long?
• If I’m injured on the job during a disaster, would I be covered by workers’ compensation?
• What happens if a disaster occurs during a mandatory strike?

What should I do if I’m injured in a disaster and can’t go to work?
Call your employer as soon as possible after your injury; if you are unable to call, have a friend or family member call for you. Explain the situation and ask your employer to keep your employee benefits, especially your health insurance, in force. (See Protecting Y our Health for more information.) Ask how much sick leave and vacation time you have accrued. If you are covered by disability insurance at work, ask your employer to start the application process immediately and find out how long you must wait before benefits will begin. Also plan to call your insurance agent if you have your own disability insurance.

How do I get unemployment compensation?
Unemployment compensation can be applied for at the walk-in FEMA Disaster Recovery Centers set up near the disaster area. You can also call FEMA at 1-800-621-FEMA (3362).

Your Rights under the ADA If you are disabled by a disaster and want to return to work, you may be protected from job discrimination by the Americans with Disabilities Act (ADA). The ADA requires employers covered by the law to make “reasonable accommodations,” or changes, so workers with disabilities can do their jobs. To learn more about the ADA and other issues related to disabilities, visit the federal government’s Web site at www.disabilityinfo.gov.

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Government Benefits
If you are disabled in a disaster — or for any other reason — there are federal programs that may help you.

If I’m disabled and can’t work, will I receive Social Security benefits?
The Social Security Administration (SSA) has two programs that pay a monthly benefit to people who are disabled and cannot work, but you must apply — and qualify — for these benefits.

• Social Security Disability Insurance (SSDI) is for people who worked and paid Social Security taxes for a certain period of time before becoming disabled. Children and spouses of disabled workers who are receiving SSDI benefits also may qualify for benefits.
• Supplemental Security Income (SSI) is for people with disabilities who have very little income and very few assets. There are no prior work requirements. Both adults and children with disabilities can apply for SSI benefits.

If you or a member of your family is disabled in a disaster, contact the Social Security Administration to start the process of applying for benefits. (Note that a disability must exist for five months before you can submit an application.) Keep in mind, however, that SSA’s rules for qualifying for benefits are strict and there are waiting periods to fulfill before you can begin receiving benefits. To learn more, go to SSA’s Web site at www.socialsecurity.gov or call 1-800-772-1213.

I’m a veteran. What might be available to me?
If you are a veteran and become disabled in a disaster, you could be eligible for a monthly disability benefit, depending on your military service record, the severity of your injury, and your other income. For more information, visit the Department of Veterans Affairs Web site at www.va.gov.

Other Sources of Cash
In a disaster, one of the first things you are likely to need is money for food, shelter, repairs, and more. Be prepared with cash and know where you can access larger amounts of money.

What can I do to protect my cash flow?
Since power may be out after a disaster, ATMs and credit card processing machines may not be working. In addition, banks may be closed or you may not be able to return home. To get through this time, stash a sufficient amount of cash, traveler’s checks, and a roll of quarters (to use in pay phones) in a disaster supplies kit that you keep at home and can get to quickly. To determine how much money to set aside, estimate how much your family would need for three days if you could not return home, the power remained out, or if you were unable to get cash from an ATM or bank. (Click here for more information about putting together a disaster supplies kit.)

It’s also important to set aside extra money in an emergency fund. Many financial experts advise saving enough money to cover your bills for three to six months. Place the money in an account that you can get to easily, such as a bank savings account or money market account, and then leave it there until you face an emergency or unexpected expense. Consider depositing some funds in a financial institution that is outside of your local area to decrease the chances of it being affected by the same disaster.
Some people choose to put part of their emergency fund in gold or silver, but keep in mind that the price of precious metals fluctuates daily. Unlike an insured bank or credit union account, the money you invest in these commodities is not guaranteed. In addition, there may be costs to store and insure them.

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Saving Tips No matter how much we make, most of us have difficulty finding extra dollars to save. These three simple ideas might help. Place $1 a day plus your loose change in a jar. At the end of the month, you may have $50 or more to deposit in a savings account. Instead of buying lunch, pack lunches and bring them to work. You easily could save $100 a month. When you get a tax refund, a bonus at work, or cash on your birthday, put half of it in your emergency fund.

Can I tap into my retirement plan if I experience a disaster?
Ask your employer about the rules for borrowing against your retirement plan. Also, keep in mind that if a disaster leaves you disabled, you can withdraw money from the retirement plan without penalty, although you will have to pay income tax.

Where else can I look for extra cash?
A whole life or universal life insurance policy might have a cash value that you can use to get a loan from the insurance company or withdraw some of the cash value. (Term insurance has no cash value.) Keep in mind, however, that the insurance company may charge you a fee. In addition, a portion of the cash value may be taxable if the amount received is a partial surrender of the policy and is greater than the cumulative premiums paid. Nonetheless, in certain cases life settlements may provide a viable source of cash.

You also could consider a reverse mortgage (a loan against the equity in your home) or selling some of your personal property to generate extra cash. Finally, be sure to find out about any special disaster relief funds that may be available from federal, state, and local governments. These funds are generally income-tax free.

Managing Debt
The better financial shape you are in now, the better you’ll be able to handle a disaster. One thing you can do to prepare is get control of any debt you have.

I feel overwhelmed by debt already. What would I do in a disaster?
As much as possible, get debt under control and pay down your credit cards so you’ll have access to credit if you need it in an emergency. The following ideas may help:

• Call the businesses to which you owe money. Ask for their help in working out a manageable repayment plan. It may be hard to make these calls, but most creditors will work with you. You also may benefit from a nonprofit debt counseling service, such as Consumer Credit Counseling Service (CCCS). Call 1-800-388-2227 or go to the National Foundation for Credit Counseling Web site at www.nfcc.org.
  
• Pay off credit card debts with the highest interest rates first, if possible. If you cannot pay off the entire amount, at least pay more than the minimum required every month.
• Consider bankruptcy only as a last resort. If you find yourself in this situation, call a lawyer or legal aid clinic before taking action.
• Make sure that your disaster supplies kit contains information about your loans and credit cards, including account numbers and contacts.

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Professional Advice
When dealing with financial matters and the unknown, you may find yourself overwhelmed. Don’t worry — there are many professionals who can help you.

If I decide to consult a professional for financial advice, what should I look for?
Here is a checklist to use when selecting a financial adviser:

• Ask for recommendations. Your friends or other professional advisers, such as your lawyer, may refer you to someone.
• Contact a professional association for names. Four national professional organizations that can provide you with the names of their members are:
1. The AICPA: for a list of CPA Personal Financial Specialists, go to www.cpapfs.org, or contact your state’s CPA society by visiting www.aicpa.org and clicking State News & Info. Or call 1-888-777-7077
2. The Financial Planning Association: 1-800-322-4237, www.fpanet.org
3. The National Association of Personal Financial Advisors: 1-800-366-2732, www.napfa.org
4. The Society of Financial Service Professionals: 1-888-243-2258, www.financialpro.org
• Interview several advisers before making a selection. Ask about credentials (such as CPA, PFS), experience, services, costs, and references. Make sure you feel comfortable with the one you select.

How can I learn more?
In addition to the professional associations listed above, many books, magazines, and Web sites have excellent information about personal financial planning. For example, check the National Endowment for Financial Education’s Web site at www.nefe.org (click Multimedia Access). A librarian can guide you to other sources of reliable information as well.