Disabled Children


Disability insurance replaces income in the case of a disability and will therefore cover the employee rather than children of the employee. If you are concerned about the ongoing financial needs of your disabled child you should be considering taking out life insurance on your life with your child, or perhaps a trust for your child, as the beneficiary of the insurance proceeds. If your child is physically disabled but mentally sound you can name the child as the direct beneficiary of the insurance proceeds and your child can manage their affairs as they see fit. If your child is mentally disabled and not able to manage their own affairs then a trust should be established whereby the insurance proceeds will be placed in a trust and a trustee named to manage the assets on your child's behalf.