Term Life Insurance Articles
Life Insurance Policies For Parents With Special Needs Children
2010-01-01
Amongst many challenges parents of special-needs children face, financial issues predominate. Parents tend to become so stressed and overwhelmed by short-term care needs that plans for long-term care are neglected. However, the key to securing adequate resources for a special-needs child's entire life is long-term planning, which should include comparing term-life insurance quotes, term-life insurance premiums, and term-life insurance coverage.
According to "Life Insurance Planning for Parents with Children with Special Needs," by insure.com, 23% of 580 parents of special-needs children confirmed needing an average $500 monthly for their care. And although 60% realized that their children will require ongoing care for years and the same amount of money to survive monthly, fewer than half have a financial plan. Furthermore, 42% of parents most confident that their financial plans are adequate to meet lifetime needs for their special-needs children have invested in life insurance.
The best long term investment for special-needs children, according to financial advisors, is establishing a trust, which provides money for living expenses while interfering minimally with other forms of aid received.
Special-needs trust funds in a special-needs trust or supplemental trust are not allotted for basic-care needs that federal and state programs provide, according to "Special Needs Trust Helps Disabled Child," by Sandra Block on usatoday.com. Trust money covers costs, like recreational activities, companions, equipment, and programs that may be deemed unnecessary.
According to rules set up for special-needs trusts in the Omnibus Budget Reconciliation Act of 1993, parents or guardians must write a letter of intent, which gives instructions regarding care. They must name a trustee, preferably someone familiar with the child's needs. Trust funds can come from assigning assets to that end or retirement funds. Term life insurance quotes and scrutinizing term life insurance premiums and term life insurance policies help substantially with funding trusts. Getting a term life insurance policy while young is recommended, as premiums increase with a person's age. While trustees are responsible for managing trust funds, parents and guardians are responsible for how they want the money invested. Factors to consider include life expectancy for the child, how much will be needed annually, and risk tolerance for investments. Parents exploring their options and looking into wills, guardianships, conservatorships, letters of intent, and financial strategies to ensure care for their special-needs children are strongly encouraged to consult with professional financial advisors and lawyers who specialize in special needs.
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Amongst many challenges parents of special-needs children face, financial issues predominate. Parents tend to become so stressed and overwhelmed by short-term care needs that plans for long-term care are neglected. However, the key to securing adequate resources for a special-needs child's entire life is long-term planning, which should include comparing term-life insurance quotes, term-life insurance premiums, and term-life insurance coverage.
According to "Life Insurance Planning for Parents with Children with Special Needs," by insure.com, 23% of 580 parents of special-needs children confirmed needing an average $500 monthly for their care. And although 60% realized that their children will require ongoing care for years and the same amount of money to survive monthly, fewer than half have a financial plan. Furthermore, 42% of parents most confident that their financial plans are adequate to meet lifetime needs for their special-needs children have invested in life insurance.
The best long term investment for special-needs children, according to financial advisors, is establishing a trust, which provides money for living expenses while interfering minimally with other forms of aid received.
Special-needs trust funds in a special-needs trust or supplemental trust are not allotted for basic-care needs that federal and state programs provide, according to "Special Needs Trust Helps Disabled Child," by Sandra Block on usatoday.com. Trust money covers costs, like recreational activities, companions, equipment, and programs that may be deemed unnecessary.
According to rules set up for special-needs trusts in the Omnibus Budget Reconciliation Act of 1993, parents or guardians must write a letter of intent, which gives instructions regarding care. They must name a trustee, preferably someone familiar with the child's needs. Trust funds can come from assigning assets to that end or retirement funds. Term life insurance quotes and scrutinizing term life insurance premiums and term life insurance policies help substantially with funding trusts. Getting a term life insurance policy while young is recommended, as premiums increase with a person's age. While trustees are responsible for managing trust funds, parents and guardians are responsible for how they want the money invested. Factors to consider include life expectancy for the child, how much will be needed annually, and risk tolerance for investments. Parents exploring their options and looking into wills, guardianships, conservatorships, letters of intent, and financial strategies to ensure care for their special-needs children are strongly encouraged to consult with professional financial advisors and lawyers who specialize in special needs.
