Some Life Insurance Providers Working to Meet Special Needs of Families

There are some families who have unique or special needs when it comes to life insurance. This story by Scott Reeves talks about special needs and what some life insurance companies are doing to meet these needs.

Do you have a special needs child? Did you purchase life insurance years ago thinking that you wouldn’t need it but now find yourself with a terminal illness? People purchase life insurance hoping it will help them in an unexpected moment of crisis. The sad truth of the matter is that many policies are written in a way to only offer life insurance payouts under certain rigid circumstances.

Some life insurance providers are taking steps to improve these standards and are giving parents of special needs children of families of the terminally ill more flexibility in their policies. What if you could:

1. Cash out your policy to pay for medical expenses, in-home care and other basic needs?
2. Use your policy as a type of “collateral” to help you get medical loans or other assistance?
3. Partially fund a special needs trust with your life insurance policy?
4. Provide an alternative asset to help your family?
5. Help you avoid taxes on the assets so you have more to help your family?

These are just a few examples of ways that life insurance could be able to help families with special needs that have policies. If we as citizens continue challenging the rules and making new demands for life insurance, we may see more life insurance companies taking steps like these to meet the special needs of families.

When it comes to choosing a life insurance policy to help in special needs cases like this, it will depend on the specific needs of you and your family to help determine what policy is best for you.