| Special needs children require a lot of care, not just in | | | | insurance benefits (and even other assets if you so |
| their younger years, but also as adults, often at the | | | | wish). The trustee is not allowed to benefit personally |
| hands of a dedicated caregiver. The monthly | | | | from the trust. Further, receiving financial benefits via a |
| expenses of caring for a child with special needs can | | | | trust won’t disqualify children with special needs |
| easily run into hundreds of dollars. | | | | from receiving government assistance. So forming a |
| Parents are often too overwhelmed with the daily | | | | trust will overcome both the problems highlighted |
| demands of these children, to worry about looking into | | | | above. |
| the right financial planning vehicle to provide for special | | | | In addition to forming a trust, here are more tips for |
| children in their later years. However, when you are the | | | | you when planning your child’s future. |
| parent of a special needs child, you should consider | | | | - Work out details of your plan, and make sure other |
| planning your insurance so that your child receives the | | | | family members are clear about it too. Despite the |
| maximum benefits. A term life insurance is the most | | | | formation of a trust, a child with special needs will need |
| affordable insurance plan. | | | | a place to stay. Involve the whole family in deciding |
| Some of the difficulties commonly encountered when | | | | where that will be, especially when after both you and |
| providing for the future of a child with special needs. | | | | your spouse are no more. |
| Children with special needs often need assistance all | | | | - Talk to an attorney and financial advisors who |
| through their adult life, and obviously parents cannot | | | | specialize in special needs cases. |
| provide their personal care indefinitely. | | | | - Write a letter of intent and leave it your attorney. |
| - Many parents think of making a sibling the beneficiary | | | | Your attorney will help you draft it. |
| of their special needs insurance plan, and entrusting the | | | | - Work out what government benefits your child is |
| sibling with the responsibility of succeeding themselves | | | | entitled to. |
| as caregivers. In such a case, what if the sibling | | | | Choosing the right life insurance policy |
| predeceases the special needs child, or worse, | | | | Permanent life insurance policies usually provide for a |
| misappropriates the money (there have been too | | | | cash value in addition to the sum insured and can be |
| many instances)? | | | | very useful in financial planning for the needs of a |
| - Some parents think that making a special needs child | | | | special needs child. Term life insurance policies provide |
| a direct beneficiary of their insurance policies is the | | | | only the sum assured, but are available for pre-defined |
| best approach. What they don’t know is that by | | | | terms only. Keeping in mind that parents may already |
| doing so they would disqualify the child from receiving | | | | have a lot of financial responsibilities, term life insurance |
| government assistance. Any inheritance of more than | | | | is the more economical option, provided it is taken for |
| $2000 will disqualify your special needs child from | | | | a long-enough term, or comes with an option to |
| federal assistance and state assistance programs. | | | | favorably extend the policy at the end of the term. |
| Therefore it is pertinent that parents not just plan for | | | | Term life quotes can be easily obtained through the |
| the future, but also make sure that their planning is | | | | Internet from a multi-carrier insurance agency. Keeping |
| correct, and is one that does not disqualify the child | | | | in mind that you are planning for a special needs child, |
| from getting the government assistance that he or she | | | | you would probably find it beneficial to follow-up the |
| is entitled to, as a United States citizen. | | | | free online quote by meeting with a representative for |
| Life insurance planning | | | | an in-depth discussion. |
| Most parents with special needs children have | | | | Be prepared, the right way |
| seriously considered one or both of the | | | | A lot of families are quite unprepared to deal with the |
| above-mentioned ‘mistakes’. But as you can | | | | future needs of children with special needs. These |
| see, they are both not the ideal way to make sure | | | | days, medical technology is helping children with special |
| your child has enough money (and therefore adequate | | | | needs to live longer and more productive lives. |
| care) when you are not around. | | | | Insurance and its correct disbursement via a trust are |
| The answer to the above challenge is to form a trust, | | | | key components in making sure that they are happy |
| and make the trustee a beneficiary to your life | | | | and cared for though life. |
| insurance policy, so that the trust is funded by your life | | | | |