What You Should Know
- Disabled individuals can purchase life insurance policies, though they may be limited and could cost more than an average policy
- You can name your disabled child as the beneficiary of your life insurance policy
- Creating a trust may help your child receive funds from your life insurance policy while still receiving state or federal assistance
If you have a disabled child, you have probably thought about how they'll be cared for once you've passed away. You may have even wondered about your child's options when it comes to life insurance.
There are life insurance companies that offer life insurance for disabled children. There are a number of policy types you may be interested in for your disabled child.
Life insurance for developmentally disabled individuals, such as a life insurance policy for an autistic child, can be harder to find than an average policy. Additionally, life insurance for special needs people is often more expensive than a standard policy.
If you are looking for affordable life insurance for a disabled child, your best bet is to do some research online to see which companies offer policies and rates that would work for your child.
Because life insurance for individuals with an intellectual disabilty can be tricky to figure out, you may consider speaking with an agent who could help you along the way.
If your disabled child does not have any dependents or any debt, they will likely not need a life insurance policy. If that's the case, you can purchase life insurance for parents or guardians of disabled children to make sure your child is cared for.
Life insurance quotes for disabled children may vary, so be sure to compare rates from multiple companies to find the best life insurance for parents of disabled children.
You can also use our free quote tool above to compare life insurance rates for disabled children and see how much you could expect to pay.
Which life insurance companies offer coverage to disabled people?
There are some companies that offer life insurance for disabled adults. Because there is a wide range of disabilities, your child's unique situation will likely be evaluated before a company offers any life insurance coverage.
Some of the top companies that offer life insurance coverage for disabled individuals include:
- Fidelity Life
- Northwestern Mutual Group
- Mutual of Omaha
- State Farm
- Family Life
While these companies are not the only ones to offer life insurance coverage to the disabled, they may be a good place to start when it comes to researching your child's options.
While finding life insurance with a disability can be difficult, don't assume it's impossible. You can check with different life insurance companies for disabled children to see how much life insurance would cost.
How can my life insurance take care of my disabled child?
If you currently have a life insurance policy and you're worried about how your child may benefit from it, there are steps you can take to make sure your child will be cared for.
The most straightforward option when it comes to your life insurance policy covering your disabled child is to name your child as a beneficiary of your policy.
This way, your child will receive the death benefit—or a portion if it's divided among other children—that can help to cover your child's needs and expenses.
One problem with naming your disabled child as a beneficiary of your policy could be that it impacts their eligibility for state or federal assistance.
Because of this, another option for you would be to have trust insurance for your special needs child.
Essentially, you could set up a special needs trust and name your child as the beneficiary.
Your child could still receive their funding, and the trustee of the special needs trust would ensure your child received all the benefits from your life insurance policy in the ways you wanted.
Should I purchase life insurance for my disabled child?
If you have a disabled child who has children of their own, or if your disabled child has debt associated with a home or business, a life insurance policy can make sure all their responsibilities are covered when they pass away.
But if your disabled child does not have dependents and has not accrued much debt, a life insurance policy in your child's name is probably not necessary.
Instead, you could add your child as the beneficiary of your life insurance policy. This way, they will receive the death benefit of the policy.
If you're concerned about your child's eligibility for state or federal assistance, you can always set up a trust. You would name the trust as the beneficiary of your life insurance and name your child as the beneficiary of your trust.
Before you make any decisions, it's a good idea to seek legal help to make sure everything is set up correctly. Because the process is complex, you'll want to ensure you've done everything correctly and that your child will receive all their allotted benefits.
As you look to buy life insurance for a disabled child, be sure to use our free quote tool below to compare rates and see how much you could save.