The Life Insurance for Disabled Child is one of the most useful instruments that secure the life of the disabled child even after the death of the parents. This is a legal arrangement created by means of Term or permanent (cash value) life insurance. They are utilized in funding a trust for special needs providing financial assistance to the child. This doesn’t risk the eligibility of the child for getting SSI Benefit. SSI seeks for criteria when the child must always possess minimum asset or have less income. So saving any money for the future for the child can put its ability on risk. The trust on the other hand remains under a trustee SSI doesn’t count it. The trust thus supplements the benefit from government but never replace it. The fund belonging to the trust can be used for purposes such as, transportation, clothing and others.
"Survivorship" or "Second to die" insurance often fund this trusts for special needs in full or in parts. They are options, which is less expensive and can be considered if the secured future of the child at a budget is the major lookout. Although a professional advisor must always be consulted to get the option in regards to insurance for disabled child best suiting one’s preferences.
The families in US often find great difficulty in raising their kids who bear a disability of one kind or other. It is rather a struggling phase of the life of the parents to have their disable child grow up in a comfortable manner. In this context, one must get acquainted of the fact that there are many disabled children and adult who are benefited to a great extent by the two programs run by Social Security. One of them is the Social Security Disabled Insurance and the other one is the Supplemental Security Income (SSI). Here is an overview on the various benefits extended by the programs.
A child, who is under 18, is referred as disabled if somehow he or she bears a severe physical or mental condition limiting the functionalities of its mind and body. It is been considered that the disability must continue for 12 months at least or might result in the death of the child.
The common instances at which a child is entitled to get the SSI payment are that if it is under 18 and one of the parents is dead or if it is dependent to a parents getting retired or getting disability benefits. Another essential is that the disability of the child must start before the age of 22. In case a family having very low income and resources bears a disabled child and if the child is under 18, then Social Security Disability Benefit is paid to the child regardless of the other requirements mentioned above.
There are certain clauses related to how long the Disability Insurance Benefit is continued. The benefit might continue as long as the child is unable to work. In case the child is getting the disability benefit on account of one of the parents being dead or the parents being retired or disabled himself/ herself, then the Disability Benefit is stopped as the child reaches 18 or 19, if he/she is a full time student in an elementary school.
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