Over time our engagement in creating a plan for a child with special needs has become a more frequent occasion. Statistics now report that one in seven children born, will have special needs requiring added lifetime support for education, healthcare and more.
It is a very complex discussion.
First, a special needs child born to a couple in their 30’s, could live 60-70 years, which is beyond the parents life expectancy and ability to provide. Providing a backstop for that child with life insurance, as the need for coverage will be permanent.
Second, inflation is a critical component in arriving at the need. Unfortunately, healthcare and education out run normal 2-3% inflation, and can significantly influence a life time plan.
Third, it is not uncommon that new parents to a special needs child can understand the long term needs, but are often not successful enough to address the long term need.
Social services do provide a safety net but that can be a slippery slope in working within the system.
This more often leads us to the grandparents. With the lifetime exemption doubling in 2018 the ability to respond to a special needs grandchild’s lifetime needs has been enhanced. Using a permanent life insurance program to address this type of long term need, will create a significant amount of leverage against the ultimate total cost of support.
This is always a complex discussion, but including the grandparents to add leverage to the need could be a solid solution.
Please let us know if you need a full special needs analysis to support a client. Drop me an email at email@example.com or call at 203 637-6655