Life Insurance for 13 Year Old with Down Syndrome

[NCAgent]

Other than that she is pretty healthy

She is not high-functioning either as far as I know. I've got life insurance on the mother and trying to do insurance on all 4 of her kids. One has trisomy 21 and the other 3 are otherwise healthy.

Any thoughts on who I can get a policy through for the child? I'm thinking around 15-20k but I can do more or less as necessary.

Every company I have right now it is pretty much an auto-decline.

Thanks!

EDIT: I have been doing some searches and I keep seeing newby saying do to funeral preneed. That is definitely an option I will look at. However, I figured since the child was so young there might be other options as well, and some of the options for older people might not work for this child as well. I'm also looking for a more up-to-date answer.

 

[LGilmore]

what type of coverage on the mom? May I suggest a cash value type? Why? Chances are great a downs child will pass before 50. The child may pass before the mom. A cash value policy would provide funds. I don't think downs is insurable.
But I haven't looked in years.

 

[NCAgent]

Mom has a term policy right now due to some financial issues. I will be getting her whole life in the next year or two. Father has a WL policy with *some* cash values. I'd still prefer a policy for the child separately if possible.

 

[Newby]

Other than that she is pretty healthy
She is not high-functioning either as far as I know. I've got life insurance on the mother and trying to do insurance on all 4 of her kids. One has trisomy 21 and the other 3 are otherwise healthy.
Every company I have right now it is pretty much an auto-decline.

Thanks!

EDIT: I have been doing some searches and I keep seeing newby saying do to funeral preneed. That is definitely an option I will look at. However, I figured since the child was so young there might be other options as well, and some of the options for older people might not work for this child as well. I'm also looking for a more up-to-date answer.

If you could make a wish list of what you are looking for to insure special needs kids but stay in compliance with their state benefits it would have to be:

1. Low face amount (under $15,000 most states) larger policies will get them thrown off state benefits. Plus you don't overfund these policies because any excess death benefit MUST go to their estate (not a beneficiary) and will go to Medicaid.
2. Automatic face amount increases each year (inflation protection)
3. True Guaranteed issue with no exceptions
4. Quicker non-contestable death benefit than any other GI policy
5. Free irrevocable trust (to comply with state benefits)
6. Paid up during the parent's lifetime
7. Attractive commission for the agent

 

[tlmarketing]

Metlife has some great resources available for families with special needs.

MetDesk Special Needs Calculator

 

[Newby]

That wish list is called a Preneed policy and they have been what parents of special needs kids have used for over 25 years. They work perfectly. There is no need to search for other products. They will eventually be advised by their caseworker or attorney to buy a Preneed policy.

 

[NCAgent]

So in the state of NC I don't believe I can sell it without a funeral director's license. I guess this is going to be fun trying to get that for the child.

But thanks Newby for helping me out with that!

 

[VolAgent]

So in the state of NC I don't believe I can sell it without a funeral director's license. I guess this is going to be fun trying to get that for the child.

But thanks Newby for helping me out with that!

Do the right thing then. Find a preneed agent to split the case with you.

 

[NCAgent]

I concur. That is where it is going to be fun because I don't know any agents and I'd prefer to learn a little bit about the agent I am going to work with, first.

But thanks a lot for the help here with this, hence why I love this forum.

 

[JGold814]

if the cost is a big concern and they're looking for permanent insurance...perhaps you should look into doing a UL for the parents instead of WL and then SIWL for the kids.

ULs are generally going to be significantly less than WL in terms of cost, but you don't have as much cash value being generated as you do with WL - the emphasis being on the death benefit rather than on the cash value. That might be a better option for the parents' programs if they want to keep their costs down.