Special Needs Financial Planning | Insurance Planning
Shepherd Financial Partners is an independent, full-service financial and wealth management practice. Our goal is to provide you with superior, comprehensive financial and wealth management services in the context of a personal, long-term commitment.
Shepherd Financial Partners is an independent, full-service financial and wealth management practice. Our goal is to provide you with superior, comprehensive financial and wealth management services in the context of a personal, long-term commitment.
18091
page,page-id-18091,page-template-default,ajax_fade,page_not_loaded,,qode-theme-ver-9.1.3,page-insurance-planning,wpb-js-composer js-comp-ver-4.12,vc_responsive

Insurance Planning

Insurance Planning

Life Insurance

It is critical to plan for the unlikely but catastrophic event of a parent’s death. Many families of people with special needs do not have 2 parents both in the workforce.  The stay at home parent is not only the primary caregiver, but many times the glue needed to keep the family together.  It is ironic that the stay at home parent is needed so much that it is very difficult to find another person to try to fill their shoes and underscores the importance of life insurance for both parents of children with special needs.

 

A classic mistake we often see is a young couple sold second to die life insurance policies to fund a Special Needs Trust when both parents die. One of the main reasons it is attractive is that it is inexpensive to buy a large amount of insurance coverage.

 

Proper life insurance planning needs evolve through the years. In the early years it is important to have insurance coverage for both parents as the death or disability of either parent would have devastating consequences.

 

In a typical life cycle of a family, there is a tight budget when parents and children are young, and term insurance will cover against the improbable event but as they build a financial base, a consideration may be to purchase a permanent form of insurance.

Health Insurance

Health insurance is a critical need for all families.  Although an individual may be eligible for government sponsored insurance such as Medicaid , it may be prudent to purchase insurance for an individual with disabilities.  Whenever possible, a dependent child should be included on a parent’s health insurance coverage and dental coverage, making Medicaid the payer of last resort.

Special Needs Planning Story

INDIVIDUAL CASE STUDY

Shauna is an adult with a medically complex situation.  She was awarded a judgment and has a special needs trust that was funded by a medical malpractice insurance settlement.  Since the trust has a payback provision, the government has a lien on the assets in the amount of the medical payments paid on her behalf. By purchasing a health insurance policy for her using income from the trust to pay for premiums,, we had greater flexibility in selecting the doctors and dentists that Shauna was comfortable with.  This not only gave Shauna better access to care, but it reduced the reimbursable medical expenses required at her death.  Because of this, there was money left in the trust that went to her brother and sister, who were the contingent beneficiaries of her special needs trust upon her death.

...... Shauna’s trustee.

MBFree03_HannuKeskiHakuni

We instinctively want to protect family members and manage their risk.

What if I die too soon? What if I live too long? What if I become disabled along the way? How can I protect my family’s financial security in the event of my premature death or disability? Insurance can provide the protection from financial risks we cannot manage by savings alone.