Life Insurance Fort Lauderdale Florida FL
Reader’s Question:
My 5 year old child has physical disability which is inborn. I am worried about his future and I am hoping there is any government or private insurance product that will help me save for and fund his future care.
Jofy
Fort Lauderdale, FL
Although many disabled children and adults receive benefits from two government programs, Supplemental Security Income (SSI) for disabled individuals and Medicaid, no government or private insurance product has been created specifically to save for and fund the future care of disabled children. A very common insurance product called life insurance can play a critical role in securing your child’s financial future in Fort Lauderdale Florida FL.
Term or permanent life insurance can be used to fund a special needs trust which serves as a legal arrangement that allows you to provide for your disabled child throughout his life without risking his eligibility for SSI or Medicaid, even after you die. To receive these 2 government benefits, your child must have minimal income and assets. This means that you potentially jeopardize his eligibility for benefits every time you save a dime towards his future care.
Because of the fact that the funds in a special needs trust are actually managed by a trustee, it means that such does not legally belong to your child. Therefore, they are not considered “countable” for SSI and Medicaid eligibility purposes. Funds in the trust must supplement government benefits rather than replace it. They must be used for expenses which are not covered by government programs in Fort Lauderdale Florida FL such as clothing and transportation.
Once the trust is already created, you can always fund it using an asset that you choose such as stocks, cash, personal property, among others. Many people I know will always choose to fund a special needs trust with life insurance policy in FL. This trust can own life insurance policy or can be named beneficiary of your policy in the event that you prematurely die. Many special needs trusts are funded at least by “survivorship” or “second to die” insurance which is less expensive than other types of life insurance, an important consideration if you’re trying to find room in your budget to save for your child’s future care. However, talk to a professional advisor in Fort Lauderdale Florida FL. You never run out of options that may better suit your needs.
Tags: disability life insurance, child life insurance, disabled life insurance