Life Insurance Considerations for Parents of Special Needs Children
Parents of special needs children are not only vulnerable to emotional hardships, but also financial hardships. According to The U.S. Department of Agriculture, the cost of raising a child to the age of 18 is around $240,000. Autism Speaks estimates that amount jumps to more than $1.4 million when you figure in a child with a disability. For parents of children with special needs these costs are the reason to start planning for your child’s future in the event of your death. Life insurance as part of overall planning for parents with a special needs child, can help secure the financial future of the child whose functional needs may require ongoing assistance.
Important Questions to Consider
Purchasing life insurance to help provide for a special needs child requires careful planning and future financial considerations. Here are questions to think about when purchasing life insurance to cover your special needs child.
- How severe is the disability?
- What type of daily care do they require?
- Do they qualify for government benefits?
- Are there assets that can assist with future expenses?
- Do you have a special needs trust?
The trust holds assets for your child, and the trust documents specify how the money should be used and will be named the beneficiary of the life insurance.
Protect Your Children with CBIZ Individual Insurance Solutions
When you work with CBIZ, you always have the support of a trusted advisor backed by national resources. Our ultimate goal is to help find you the correct level of coverage to meet all of your family’s financial obligations, securing your peace of mind and a solid financial future.