How Different Types of Insurance May Assist Your Child with Special Needs

How Different Types of Insurance May Assist Your Special Needs Child

As the parent of a child with special needs, you must plan not only for your financial future but also for that of your child. That plan may include the use of various forms of insurance. While you may plan to care for and financially support your child with special needs in the immediate future, you may reach a point at which you are no longer able or available to care for your child. Insurance is one way that you can help provide for your child’s financial needs and protect their future. Rubin Law can help you determine the best insurance options to provide for the current and future financial needs of your child with special needs.

Health Insurance

Health insurance coverage for your child with special needs is crucial. This coverage can help your child avoid crippling medical bills and an inability to afford necessary medical care. By law, your children can remain on your private health insurance through your employer or the marketplace until they turn age 26. However, in many cases, children with special needs may be able to remain on your private health insurance coverage even beyond age 26, which can be very helpful in covering necessary medical expenses.

Children with special needs may be eligible for Medicaid benefits when they turn 18 by engaging in careful planning, including setting up a special needs trust. Medicaid will act as secondary or “backup” coverage to any private health insurance coverage for medical expenses. This dual coverage can make medical expenses much more affordable than with private insurance coverage alone. Medicaid will also cover certain adult services for children with special needs, such as group homes, job coaches, and similar services, particularly once these individuals are no longer eligible for special education services.

Life Insurance

Many parents choose to maintain life insurance policies for the support of their children if they pass away before their children become adults or even after they become adults, including children with special needs. While life insurance can be a cost-effective way to provide much-needed financial support for a child with special needs, parents should direct the proceeds of any life insurance policies into a special needs trust rather than directly to the child. Otherwise, if the child directly receives the proceeds of the life insurance policy, the funds may cause the child to lose eligibility for SSI and/or Medicaid, which can have devastating consequences.

Supplemental Insurance Coverage for Parents

Parents of a child with special needs may also need supplemental insurance coverage to continue supporting their child financially. For instance, they may want to maintain short and long-term disability insurance policies, which provide them with a portion of their income if they cannot work temporarily or permanently in the future. Long-term care insurance can help pay for the costs of care if you enter a nursing home or need skilled at-home health care.

Other types of insurance may also affect parents and their children with special needs, especially if the children live independently or drive a vehicle. Property insurance, rental insurance, and car insurance are all important forms of coverage that you should have in place as needed to help protect your financial future and that of your child with special needs.

Contact Us Today to Learn More About Our Legal Services

Rubin Law is the only Illinois law firm to dedicate itself exclusively to providing compassionate legal services for children and adults with special needs. We offer unique legal and future planning techniques to meet your family’s individual needs.

Call us today at 866-TO-RUBIN or email us at to learn more about the services we can offer you and your family.