For Families Of Individuals With Disabilities
Planning for the future of an individual with special needs requires in-depth knowledge of the federal laws as they pertain to government benefit eligibility and legal documents such as special needs trusts and guardianships. There are important financial considerations as well for providing not just lifetime care, but quality of life.
In planning for the future of your dependent, remember that you are the primary expert, but you may also need to turn to a number of other specialists for assistance on such things as special needs estate planning. Though some of these issues can seem overwhelming, it is important you take the time with those specialists today to provide for your loved one’s tomorrow.
The same holds true for dealing with issues of medical insurance authorizations for specialized services and products such as physical therapy and medical equipment. It is also true when it comes to knowledge of the special education laws which most often require you to become an active advocate and participant in your child's education plan.
- One out of 9 children under the age of 18 in the US today receive special education services
- Out of 72.3 million families included in the 2000 Census, about 2 in every 7 reported having at least one member with a disability
- 20.9 million families have members with a disability
- Of the 20.9 million families reporting at least one member with a disability, 5.5 percent have both adults and children with a disability
- One in every 26 American families reported raising children with a disability
- One in every three families with a female householder with no husband present reported members with a disability
- An estimated 2.8 million families were raising at least one child aged 5 to 17 with a disability.
(Source: "Disability and American Families 2000", US Census Bureau, July 2005 Report)
The planning process begins with a complete review of your dependent's needs, future care plans, assessment of government benefit eligibility, and finally a review of your family's current financial and legal plans. Critical areas that must be addressed are:
1. Government benefit eligibility requirements for Supplemental Security Income SSI and Medicaid
2. Types of special needs trusts and knowing which are right for you
3. Guardianship, conservatorship and client self-determination and empowerment issues
4. Appropriate funding vehicles -- including life insurance, to help guarantee your child's future quality of life.
While there are various types of life insurance, two-parent families’ survivorship life could be the most appropriate vehicle to fund lifetime care for a person with special needs. Survivorship policies insure two people instead of one and pay a death benefit only after the death of the second person, when the money is needed the most. It is also generally less costly than insuring two people individually. Survivorship is a common funding vehicle in providing for the long term needs of a person with special needs.
Survivorship policies provide a policy split option when set up solely for the needs of a special needs dependent. This means that if the dependent predeceases his/her parents, the parents have an option to split the policy into two individual policies. Most insurance policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Our office will be glad to guide you through the variety of policies available.
Give us a call and let us help you determine your dependent’s needs and funding options to provide for your child when you are no longer able.
We are here to help,
NADINE M. LORD EA CFP®
INVESTMENT ADVISOR REPRESENTATIVE
REGISTERED REPRESENTATIVE
National Planning Corporation
30021 Tomas Street, Suite 300
Rancho Santa Margarita CA 92688
Phone: 949-766-7808 Toll Free 800-350-1299 Fax 949-766-7809
Nadine.Lord@natplan.com