All Communities > Mothers of Special Needs Children > Any thoughts on types of life insurance to get?

Any thoughts on types of life insurance to get?

Cathy - posted on 11/02/2010 ( 16 moms have responded )

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I have a beautiful 6-year old daughter who was born with hydrocephalus, which caused cerebral palsy, hearing and vision processing difficulties, she's non-verbal, developmentally delayed, seizures -- the whole enchilada! It appears that she will be dependent all her llife on someone. A few years back I got 3 life insurance policies -- a term (30 years), and 2 that are hybrids (don't know the proper terminology, but they have some cash value associated with them). Last week I went to see another financial planner and he suggested I trade them all in for 1 term policy, which would be much less expensive, but in 30 years assuming I'm still kicking at 80, my daughter will be 36, and then when I pass, what will there be for her to live on?

I'm sure many of you have faced similar delimmas and was wondering if you have any thoughts or have gotten any advice on what to do. We all want our children to be well taken care of, but professional financial advisors who don't have special children don't necessarily give the best advice.

thanks in advance for your thoughts!

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16 Comments

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Vanessa - posted on 01/15/2012

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any type of life insurance policy with cash value is a rip off, it's outrageously expensive (and if you don't think so, figure out the cost per $1000), it is not supposed to be sold as a savings vehicle and they keep your cash when you die, life insurance is needed when you have high responsibility, high debt, etc. but if you just use a trust account like others have said, that will help, seek legal advice about writing up trust papers and avoid any Whole Life, Variable, Variable Universal, blah blah blah, RIP OFF!!! they control the cash account, not you, it's not your's, it's their's!!!

Heidi - posted on 11/11/2010

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If you own anything outright, (i.e. House, Land, Mineral rights, or even cash that you can put aside) go to an attorney and look into a Revocable Living Trust. Trusts don't go through probate, and they escape the "death' or "inheritance" tax. Also, If you have those life insurance policies in her name, it may hinder her from being able to get SSI and other federal or state help, whereas a Revocable Living Trust won't.

Florida - posted on 11/11/2010

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I think it must depend on where you live. I'm in ONtario Canada. I'm just finding out about it myself. There is such a thing as a disability savings account that one can open, with certain banks, and have the government match some of the money you put in, as well as allot grants and saving bonds. Maybe check on an Ontario Government website the federal one. I haven't looked into it as much as I ought to just yet.

Malisa - posted on 11/11/2010

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i would contact your local or national UCP organization and they could give some advice and maybe some referals

Iridescent - posted on 11/10/2010

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Rhonda, I think this is referring to the parent's life insurance policy, not the child's. Most of the time children born with special needs are unable to obtain life insurance on themselves (or you on their life) at any point as the risk is too great of death before the company receives enough money in premiums for it to be of value to them.

Iridescent - posted on 11/10/2010

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You do need to set up a Special Needs Trust Fund as well as make certain that the trust is the beneficiary of your life insurance policy. If this is not done, Federal law drops the individual off all services, waivers, insurance until (and often up to a year after) that money is completely depleted as it counts as unearned income.

Rhonda - posted on 11/10/2010

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I have a 19 year old daughter who was born 4 months early, she has cerebal palsy, is legaly blind, is non-verbal, she also has uncontrolable seziure disorder due to a smooth brain. she will also be dependent on someone else for her care. I have never been able to get life ins. on her. I remember trying gerber life and they refused her. Could you help me find ins. thank you

Darlene - posted on 11/10/2010

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I have Gerber whole life for myself and Gerber grow up plan for my kids.

Lillian - posted on 11/09/2010

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BE SURE NOT to put the policy in your daughter's name... We have our son's in our name with the 2nd benefit going to the funeral home irrevocable trust. The remaining monies after funeral expenses can be put in a trust to be eused for whatever you wish.

Aracelly - posted on 11/09/2010

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Hi Beth, I'm not sure if your comment was for my response but I have a lot of coverage because I don't want to take any chances w/the state specially the way it's going.

Beth - posted on 11/09/2010

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Life insurance is to replace lost earnings after you die. You can have life insurance on yourself but you don't need a huge policy for your daughter, just enough for final expenses God forbid. When you are no longer alive your daughter would be taken care of by the state, you do not need to leave money for her expenses to live on.

AnnMarie - posted on 11/09/2010

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Well we have globe life we use to have Gerber but when my son was diagnosed and I let them know he was able to continue with them

Aracelly - posted on 11/09/2010

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Hi Cathy, I completely understand, I have an 8 yr old daughter that has autism, and I'm a Life agent. Before she was diagnosed I had 200K Universal life, I figure 100k for each child would be sufficient, but not knowing what the future holds I want her to be able to count on me no matter how old she is so now I have a million dollar term, that I plan on converting to permanent later when I can afford, still have the 200k UL plus whatever I get at work. Hope that helps ;)

April - posted on 11/03/2010

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look into American Income Life insurance company, they are affordable, and have program for the child as well that will double when she turns 18. I just had a visit with a rep and they have a good program that would only cost about $50 a month for life insurance on a $60,000 policy and if your death was accidental it would double the amount. They have everything.

Lynn - posted on 11/03/2010

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You need a whole life policy specific to disability. You also need life insurance on your self with a trust fund for your daughter that does not pay out until available state/federal payments have been made so that the trust is not drained befor any government help is given. It must be written up by an attorney, it is a specific and complex matter. These policies have different names in different states and must be updated if you move to a different state,and you must have a guardian and trustee (and alternatives) named for your child. We went through Thrivent Financial for Lutherans and an attorney.

Mary - posted on 11/03/2010

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we adopted our special needs children and in our state there is an organization called northwest adoption services. they know of peopl to call in our aarea and also hold seminars for parnts. i'd get in touch with any local organizations in your area that hold estate planning. sometime i will call ahead and let them know that i will need aswers regarding our special needs children and they have had someone there to help us. call very organization that you can find and start asking the hard questions! good luck!
we found a good family lawyer who has a special needs child so he was very helpful.
mary

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