Life insurance
Life insurance when a child has special needs: a trust matters
Leaving life insurance money directly to a child who receives need-based benefits can affect those benefits. Families commonly name a special needs trust as the beneficiary instead, which an attorney sets up.
Why a trust
Programs such as Supplemental Security Income and Medicaid have asset limits. A direct payout might put the child over the limit. A properly drafted special needs trust can hold the money and use it for the child's needs without disqualifying them.
What else to plan
- Who would be the child's guardian, and who would manage the trust.
- How much would be needed over the child's lifetime.
- Whether coverage should last the parent's whole life or a set number of years.
Have this ready when you call
- Your child's age and benefits
- Your attorney's name if you have one
- Your income and existing coverage
Common questions
Do I need an attorney?
Yes, a special needs trust must be drafted correctly. We help with the insurance.
Should coverage be permanent?
Many families look at permanent coverage because the need can last as long as the child lives. We can discuss it.
Related answers
Rather talk it through?
Call 855-367-1095 and a licensed agent will go through your situation with you. There is no charge to ask, and no obligation to enroll.
- Licensed insurance help
- No guaranteed eligibility, pricing, or availability
- Educational starting point
Information on this site is educational and does not guarantee eligibility, enrollment, pricing, or availability. It is not a recommendation to buy any specific plan or policy.