Life Insurance to Ensure Care for Disabled Loved Ones

Caring for a disabled loved one (or loved ones) can present both daunting challenges and uplifting triumphs. One aspect of care for the disabled is making sure that the disabled loved one will have enough money to sustain them in case the caregiver dies prematurely. 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
  • Supplementary Security Income from the Social Security Administration

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

When planning support for loved one with special needs, things to consider are:

  • 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.


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Related Topics: Understanding Insurance