Daughter spending time with disabled mother.

Care for Disabled Loved Ones

Updated December 1, 2016 . AmFam Team

A life insurance policy can help ensure that your disabled loved ones get the care they deserve if you’re gone.

Having life insurance is about caring for the ones you love by protecting them financially in the event you pass away. If you’re caring for a disabled loved one, it’s especially important to make sure that they are financially taken care of if you’re no longer around. A life insurance policy can help meet that need and provide peace of mind for everyone.

Setting up a Special Needs Trust

Individuals with specials needs, especially children, can often benefit from government assistance if their personal assets are low enough to qualify them for financial assistance. If a person with special needs is the beneficiary of a high-value life insurance policy it might be advisable for the policy-owner to consult an attorney to set up a special needs trust. A special needs trust is a legal tool that protects the assets of the special needs person without disqualifying him or her from government programs like Medicaid or Supplementary Security Income from the Social Security Administration.

A special needs trust ensures that your loved one will be taken care of financially, and they’ll also have the right authority figure in charge of the trust to help distribute the money justly. Learn more about life insurance beneficiaries and how a trust is a great way to proactively protect your loved ones fiscal future.

A Financial Safety Net

Planning long-term isn’t always easy to think about, but is incredibly important for what is ultimately an unpredictable future. The good news is that caregivers can make great use of available, easy-to-acquire planning tools, including life insurance and a special needs trust, to create a long-range financial safety net for disabled loved ones — a safety net that can last for decades or even a lifetime.

Long-Term Planning ... What to Keep in Mind

Consider these essentials when planning support for loved one with special needs:

  • Housing
  • Medical care/medical insurance
  • Personal care (grooming, bathing)
  • Meals and meal preparation
  • Education (if applicable)
  • Companionship
  • Cost of living incl. inflation
  • Transportation needs

Before beginning to plan, speak to your disabled loved one’s doctor or doctors and be frank about your goals. They can help you understand the long-range prognosis and equip you to speak realistically with an insurance agent or financial planner.

Learn more about meeting long-term needs for disabled loved ones by securing a life insurance policy at American Family Insurance. Your agent can help you customize your life insurance coverage, and in the meantime, you can read more on how much life insurance you need, or use our handy life insurance calculator (Opens in a new tab). It’s all about protecting those who matter most.

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