Life Insurance for Special Needs

Jul 8, 2015

  1. Peter Crowley
    Offline

    Peter Crowley New Member

    Posts:
    1
    Likes Received:
    0
    Dear Colleagues,
    I have a client who is the parent of a severely disabled "child" The child in this case is 21 with severe autism and has a history of seizures. She takes deprakaut (excuse spelling) which seems to control the seizures. Child had a pacemaker inserted as a young child. The proposed insured needs assistance with activities of daily living and is wheelchair bound.

    Is there any chance that this person can qualify for a final expense policy?
    The father would be the owner and beneficiary. We recognize that this case presents a major underwriting challenge. Appreciate any thoughts or recommendations.

    Thank you
    Peter Crowley
    Insurance Broker
     
  2. AlTheGud1sRtakn
    Offline

    AlTheGud1sRtakn Super Genius

    Posts:
    205
    Likes Received:
    0
    State:
    Virginia
    You could get an accidental death policy but I don't know anyone that would take them outside of that until age 40 and then you're looking at a graded benefit.
     
  3. DHK
    Offline

    DHK "YOU CAN'T HANDLE THE TRUTH!"

    Posts:
    7,958
    Likes Received:
    1,811
    State:
    California
    DHK, Jul 8, 2015
    #3
  4. WinoBlues
    Offline

    WinoBlues Guru

    Posts:
    19,002
    Likes Received:
    2,386
    State:
    California
    I hope someone comes up with something. I have a couple young adult PIs in similar situations. Once he reaches Columbian has a 3 yr GI available.

    Side note: Illustrates another place that an existing convertible child rider would have been very useful.
     
  5. Brian Anderson
    Offline

    Brian Anderson Executive Editor

    Posts:
    647
    Likes Received:
    46
    State:
    Colorado
  6. UW Guy
    Offline

    UW Guy Super Genius

    Posts:
    208
    Likes Received:
    0
    As DHK pointed out, get coverage secured on the parents with a trustee appointed so there's something in place when the parents die. This would be tough to place with virtually anyone given the list of issues here.
     
    UW Guy, Jul 8, 2015
    #6
  7. L5tc
    Offline

    L5tc Super Genius

    Posts:
    170
    Likes Received:
    1
    How does the convertible child rider work
     
    L5tc, Jul 9, 2015
    #7
  8. WinoBlues
    Offline

    WinoBlues Guru

    Posts:
    19,002
    Likes Received:
    2,386
    State:
    California
    Each company has their own options and even that can depend on the series or date the policy was written.

    In general the rider is only to a certain age, say age 25. At 25 the owner can convert the plan to a permanent policy. Many times up to 5 or 6 times the face amount regardless of health. Example a $20,000.00 child rider may be convertible to $100,000.00 at age 25. Easy, just a couple signatures, no medical underwriting. Of course a lot of times it becomes a cross sell and not a conversion.

    I have converted child riders on kids with cancer history, Wounded Warriors, in a coma, crack addicts and so on.

    Child riders are just more inventory.

    ----------

    Also, a lot of the child conversions/cross sales have becomes larger family policies later. Freshens up my book.
     
  9. ShawnSIM
    Offline

    ShawnSIM Super Genius

    Posts:
    101
    Likes Received:
    0
    State:
    Nebraska
    At a certain age, usually the 18-25 range depending on the carrier, the rider can be converted without proving insurability. This way the kiddo has his or her own policy that they would not have otherwise qualified for on their own.
     
  10. bubblegirl22
    Offline

    bubblegirl22 New Member

    Posts:
    8
    Likes Received:
    0
    Some carriers have a whole life simplified uw policies for these cases. No medical underwriting as long as they are not terminally ill, not waiting on a transplant, and not diagnosed with AIDS. I agree with previous poster, write the parents so their child or siblings will be taken care of should the inevitable happen.
     
Loading...