| Bar Bulletin |
September,
2003
|
| MSBA News |
|
Address
Your Insurable Eventualities If You Have A Child With Special Needs
By Jason S. Abosch
Planning
for the care of a special needs child can be demanding. Many times parents
consult with multiple advisors regarding a myriad of issues that could include
the titling of assets, coordination of government benefits, the drafting
of trusts and other documents and the selection of a trustee or guardian,
just to name a few.
The
planning for a child with special needs often seems to take precedence over
your personal planning and the planning for other family members. This personal
planning, at least for most people, is no less important than the planning
for the special needs child. If the caregiver or primary bread winner of
the special needs child is not protected, protecting the needs of the special
needs child can become quite a challenge.
Just
as it makes sense to consult with a team of professionals to address the
needs of your special needs child, it makes sense to meet with a knowledgeable
financial professional regarding your own planning. In the case of the primary
breadwinner or caregiver for a special needs child, it is important to address
as many insurable eventualities as possible. Here are some things to consider
as part of your personal financial planning:
- Disability
Income Insurance: Do you have as much coverage as possible? Is your total
income covered or simply your base salary? Are your disability income benefits
taxable at the time of a claim? If they are, you may receive only a fraction
of your usual take-home income. What happens to your retirement plan contributions
if you become disabled? If the coverage is provided as an employee benefit,
what happens if you are no longer employed by your current employer? Is
there a cap on the benefit payout?
- Life
Insurance: Is the amount of your coverage appropriate? How was the amount
of coverage determined? Is the type of coverage appropriate? Are the owner
and beneficiary designations titled appropriately? How long will the coverage
remain in effect? If the coverage is provided as an employee benefit, what
happens if you are no longer employed by your current employer? Is the
insurer a highly rated carrier who will be around in the years to come?
- Long-Term
Care Insurance: Is this coverage in place? If so, are the appropriate benefit
amounts in place, given average costs in your locale, and is the contractual
language up to industry standards? Does the contract language provide inflation
adjustments so that the benefits keep pace with the rising cost of healthcare?
If no coverage is in place, have you considered the impact a long-term
physical or mental incapacity would have on your assets and your ability
to provide for your special needs child?
If
you are the primary caregiver or breadwinner for a special needs child or
you have not audited your insurance portfolio, now is the time to do so.
Situations can change quickly and insurance planning is too important to
postpone.
The
Bar Associations Insurance Agency, Inc. has access to various quality insurance
products offered at discounted rates to members of the Maryland State Bar
Association and the Bar Association of Baltimore City. For more information,
call (410) 539-2320 or e-mail baragency@franklinmorris.com.
