Special needs children require a lot of care, not just in their younger years, but also as adults, often at the hands of a dedicated caregiver. The monthly expenses of caring for a child with special needs can easily run into hundreds of dollars. Parents are often too overwhelmed with the daily demands of these children, to worry about looking into the right financial planning vehicle to provide for special children in their later years. However, when you are the parent of a special needs child, you should consider planning your insurance so that your child receives the maximum benefits. A term life insurance is the most affordable insurance plan.

Some of the difficulties commonly encountered when providing for the future of a child with special needs.

Children with special needs often need assistance all through their adult life, and obviously parents cannot provide their personal care indefinitely.

Many parents think of making a sibling the beneficiary of their special needs insurance plan, and entrusting the sibling with the responsibility of succeeding themselves as caregivers. In such a case, what if the sibling predeceases the special needs child, or worse, misappropriates the money (there have been too many instances)?
Some parents think that making a special needs child a direct beneficiary of their insurance policies is the best approach. What they don’t know is that by doing so they would disqualify the child from receiving government assistance. Any inheritance of more than $2000 will disqualify your special needs child from federal assistance and state assistance programs.

Therefore it is pertinent that parents not just plan for the future, but also make sure that their planning is correct, and is one that does not disqualify the child from getting the government assistance that he or she is entitled to, as a United States citizen.

Life insurance planning

Most parents with special needs children have seriously considered one or both of the above-mentioned ‘mistakes’. But as you can see, they are both not the ideal way to make sure your child has enough money (and therefore adequate care) when you are not around.

The answer to the above challenge is to form a trust, and make the trustee a beneficiary to your life insurance policy, so that the trust is funded by your life insurance benefits (and even other assets if you so wish). The trustee is not allowed to benefit personally from the trust. Further, receiving financial benefits via a trust won’t disqualify children with special needs from receiving government assistance. So forming a trust will overcome both the problems highlighted above. In addition to forming a trust, here are more tips for you when planning your child’s future.

Work out details of your plan, and make sure other family members are clear about it too. Despite the formation of a trust, a child with special needs will need a place to stay. Involve the whole family in deciding where that will be, especially when after both you and your spouse are no more.
Talk to an attorney and financial advisors who specialize in special needs cases.
Write a letter of intent and leave it your attorney. Your attorney will help you draft it.
Work out what government benefits your child is entitled to.

Choosing the right life insurance policy

Permanent life insurance policies usually provide for a cash value in addition to the sum insured and can be very useful in financial planning for the needs of a special needs child. Term life insurance policies provide only the sum assured, but are available for pre-defined terms only. Keeping in mind that parents may already have a lot of financial responsibilities, term life insurance is the more economical option, provided it is taken for a long-enough term, or comes with an option to favorably extend the policy at the end of the term. Term life quotes can be easily obtained through the Internet from a multi-carrier insurance agency. Keeping in mind that you are planning for a special needs child, you would probably find it beneficial to follow-up the free online quote by meeting with a representative for an in-depth discussion.

Be prepared, the right way

A lot of families are quite unprepared to deal with the future needs of children with special needs. These days, medical technology is helping children with special needs to live longer and more productive lives. Insurance and its correct disbursement via a trust are key components in making sure that they are happy and cared for though life.

AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

When you die, your family will be no doubt devastated. Coming to grips with having lost you forever, they have to also think about carrying on with their lives, the best they can. Worse still is the prospect of dealing with the finances, the most pressing issue, especially if you happened to be the familys breadwinner. There is only one way in which you can make your presence felt at this crucial time in their lives, even though you are gone. There is only one way you can prepare to still help your family, even after death. Your life insurance policy will be a lasting reminder of your love for them, and help them as they come to terms with accepting life without you by their side.

Make the gift perfect with a term life policy

Just as you would spend many hours hunting around for a special gift for your loved ones, so you should spend time selecting the best life insurance policy. How can you do this? There are many kinds of insurance policies available. Some of them are quite expensive, complicated and even come with an attached investment option. If you are looking for the most economical way to get insurance however, term life insurance is the one you should opt for. Besides being economical, with a term life policy your family will have no trouble claiming death benefits when you are gone. Comparatively, claims for investment-linked policies can be complicated to work out. When your family has enough to deal with during the most difficult time of their lives, filing for a complicated claim would wear them out. Make it simple and easy for them. After all, its a gift, and it has to come to them as easily as possible. The procedure to file claims for term life policies is simple, quick and easy, perfect for a gift!

The best places to shop for the greatest gift

While the perfect gift should be easy to receive, it should be easy for you to obtain it too. Life insurance shopping can actually be quick, easy and hassle-free. You can skip going to your local agent because agents represent only a few insurance companies, and you will be forced to choose from among them. Gifts are best bought from a place where you have the widest variety of choices, and so also with life insurance. Online insurance agencies deal with hundreds of insurance companies and will give you a wider choice of gifts. Their database of hundreds of insurance companies can be accessed in minutes, and they will match your individual needs to the policies that will best address them. They can also give you comparison charts for term life quotes that best suit your requirements, and if you are still confused, an associate of the company will meet with you to help you make your choice, with honest, unbiased advice.

How to make the greatest gift perfect in every way

A gift is always given with the intention that it will not only be appreciated, but also used well. When you gift your family a term life insurance policy, you would want it to be optimally used. Your family can do this only if the death benefit from your policy is able to adequately cover all the expenses for which you meant it to be used. Did you intend your death benefit to be used to replace your income? In that case, you will need to sit down and calculate not just a projection of your current expenses and savings, but also all those new expenses that will arise from your death. If you currently take care of the plumbing, baby sit the kids on weekends while your spouse goes to a meeting, or handle all the accounts yourself, after your death your family will have to pay for these services and hire a plumber, a baby sitter on weekends, and an accountant. Make sure your term life policy takes these little things and inflation into consideration. Use the life insurance calculator available on websites to help you with the calculations.

Go ahead, and buy your perfect gift

Death is inevitable. There is no way around it, but to prepare for it. Even someone with very modest means can afford to give their family the greatest gift, and make certain that death does not wreak havoc in their lives, but leave them to handle their grief in a quiet, dignified manner.

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Are you ever too old to get life insurance? Not necessarily, but contrary to insurance salespeople, not everyone is a candidate for life insurance. There is also a lot of confusion around the difference between types of insurance such as term life and whole life insurance. Our goal is to take the confusion out of all your life insurance needs.
Many people do not understand whether or not they actually require life insurance. Most people try and avoid thinking about it and justify it by claiming they won’t need any money when they are dead. That is indeed true, but the bigger question is, “Will your spouse and or dependants need money?” If they answer is yes, you may be shopping for life insurance. The next question is what kind?
You can choose from term life insurance, whole life insurance, universal or variable universal life insurance, no-load life insurance and let’s not forget mortgage life insurance. This is a great way to have your mortgage paid off immediately if you die. This will mean your family can live mortgage free for as long as they own the house. With all the different types of life insurance policies, it no wonder most people choose not to do anything. Our goal is to take the mystery out of these policies so that you can make an informed decision.
The Different Types of Life Insurance
? Term Life Insurance: Term insurance is the backbone of most life insurance policies. You pay a fixed premium over a specified period of time. If you happen to die during that timeframe, the insurance company pays you the pre-determined amount. The issue with term life insurance is that if you don’t die within that period, the coverage ceases to exist and you are left with nothing. Another issue with term life insurance is that your premium can go up after a period of time. You can often buy another insurance policy after the term expires, the rate however will often be much higher.
? Whole Life Insurance: Unlike term insurance, whole life insurance covers you for your entire life. Basically, you pay a premium each month for the rest of your life. If you choose, you may cash in the policy while you are still alive and receive a lump sum amount. Whole life insurance policies have a face value and a cash value. The face value is the amount that is paid at death or policy maturity, the cash value is the amount you receive is you surrender the policy before you die or it matures.
? Universal Life Insurance: This type of insurance again is very different than the two above. This type of insurance policy takes your premiums and invests them into bonds, mortgages and money market funds. Your investment fund pays for the cost of the death benefit that is set when you purchase this life insurance. If your investment fund does poorly, the insurance company is on the hook to pay out a minimum guaranteed amount. This type of life insurance policy is a bit more flexible than the others because you can change the premiums and death benefits to fit your current budget. This type of flexibility is often popular with younger couples or families where circumstances can change quickly.
? Variable Universal Life Insurance: This type of insurance policy will depend heavily on how well your investment opportunities have done over the years. The better the investments do, the greater the death benefit payoff for you.
? No-Load Life Insurance: Low-load or no-load life insurance often times has fewer expenses than a traditional life insurance policy. What this means for you is that more of your premium goes towards earning you more money rather than commissions and other expenses. Speak to your financial advisor as they will likely sells no-load or low-load life insurance policies for a flat fee versus a commission.
Once you have decided that you are going to buy life insurance, the next question you need to ask is,”How much?” We highly recommend that you speak with your financial advisor and accountant. They will be able to help you determine exactly the amount of cash your family will require to maintain their current standard of living if anything should ever happen to you. They will be able to help determine what kind of life insurance rate you can afford based on your current income and expenses.
We hope we have achieved our goal about informing you on the various types of insurance on the market. There are a number of excellent insurance brokers who can offer you a range of products. We hope you have given you some information so that you can ask the right questions for you and your family.
Amy-Jo Strutt is an expert author and regular contributor to
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