How Your Employee Benefits Can Help You After A Natural Disaster

September 25, 2018

Have you recently been impacted by a natural disaster, such as Hurricane Florence or a fire out West? Employees in many parts of the country are reeling from the effects of Mother Nature’s wrath. If you’ve been affected by a natural disaster, you may be at a loss on where to turn to begin to recover or rebuild. Your employee benefits can offer some resources to help you:

Reach out to your Employee Assistance Program (EAP)

Your Employee Assistance Program (EAP) is the first place to start for online and 1 x 1 resources, including:

  • Housing challenges;
  • Help dealing with trauma or emotional effects of the disaster;
  • Legal guidance;
  • Child care or eldercare resources; and
  • Dealing with emergency financial problems, such as loss of income due to the disaster.

Call your Financial Helpline  

If your company has a workplace financial wellness benefit, call your Financial Helpline or schedule an in-person consultation to review your situation with a financial coach. Your financial coach (like one of our CERTIFIED FINANCIAL PLANNERS™ or a financial counselor in your EAP program) can give you guidance on ways to:

  • Triage what bills to pay;
  • Handle your mortgage lender or creditors;
  • Manage a loss of income;
  • Deal with your insurance company;
  • Figure out if you should file for short term disability if you’ve been injured;
  • Weigh the pros and cons of taking unpaid leave under the Family Medical Leave Act; and
  • Determine whether you should take a 401(k) loan or hardship withdrawal.

Find an attorney through your legal benefit

If you have a legal benefit at work, this is a great place to find an attorney to help you navigate any legal issues like:

  • Disputes with your insurance company;
  • Problems encountered during rebuilding; or
  • Difficulties with your mortgage lender or landlord.

Open enrollment is coming up soon, so if you anticipate legal issues, consider enrolling in the voluntary legal benefit for next year – it is usually not expensive. If you don’t have a legal benefit at work, ask your EAP if they make legal referrals to an attorney.

Get extra PTO from employee time-off donations 

If your home has been damaged, or you’ve been displaced, you will need time off to deal with this. Your company may offer emergency paid leave after a disaster, or access to PTO donated by fellow employees. Check with your HR department to see if your company has a supplemental Paid Time Off policy or a bank of employee time-off donations, and what the procedure is for applying.

File for short term disability 

If you have been injured in the disaster, you may not be able to work while you are recovering. Check with your HR Department about your short term disability insurance benefits. Keep in mind that short term disability insurance often covers only 50-60 percent of your salary, so you will need to downsize your expenses while you are away from work.

Ask for unpaid leave under the Family and Medical Leave Act 

If you need an extended period off to care for an injured family member or your own health issues, you may need to ask for unpaid leave under Family and Medical Leave Act (FMLA) of up to 12 work weeks. You’ll be required to use all your available PTO before the leave kicks in, as well as pay for your employee benefits, such as health insurance, during the period of leave.

Access a retirement plan loan or hardship withdrawal

If cash is tight because you’ve been displaced, as a last case scenario you may consider borrowing against your 401(k). In a worst case scenario, you would also be able to take a hardship withdrawal to make emergency repairs. Before you apply, make sure to talk through the pros and cons with a financial planner (see above) as there are downsides to this strategy. There may be alternatives if you need cash immediately.

Find emotional and health support through your wellness program 

You may be so busy dealing with your enormous list of things to do that you have not taken time to process your emotional reaction to what happened. Check with your company’s wellness program to see what resources are available to you to help you cope, such as:

  • Support group for employees for dealing with the disaster;
  • Meditation and mindfulness;
  • Exercise and yoga; and
  • Health screenings.

Not sure where to start? Ask your HR Rep

If it’s all too much and you’re not sure where to start, call your HR Representative. They will be able to steer you in the right direction, and let you know what company resources are available to you.