Financial planning for parents with disabled children
Financial concerns for parents with disabled children are considerably different than others. Such parents often find difficult to assess where should it begun. While drawing a comprehensive financial plan their special child is a given task, often parents find it too overwhelming and impractical to implement. The result is postponement with very high costs of delay.
Often there is serious mismatch in income levels and requirements for therapy, medicines and special care required by your special child. It makes planning exercise further difficult as budgets required are seen as impractical and often leave parents with disabled children confused.
It’s indeed a tough task, but can be made simpler with the help of professional help by a qualified financial planner who can help. The following steps can be useful when it comes to financial planning for parents with disabled children.
What kind of corpus do you need, in the short run, medium term and long term?
Depending on the type of disability, the budget requirements are different. Your initial budgeting exercise may end up suggesting you a need for impractically high funds to support your special child. However, through disciplined savings, you can achieve a large part of it. Your child’s long term need for medicines, therapy and special care depends on the type of disability and his/ her ability rehabilitate to be self-reliant in the longer run. It would be a good idea to have an open discussion with your therapist and financial planner together to assess your budgetary requirements.
What happens if I am not there to support my child?
When it comes to financial planning for parents with disabled children, this is the most daunting question. The risk of you not being there to support your child can often be mitigated by one or more of the following measures
Life Insurance – Do purchase an adequate life cover for yourself. The purchase of life insurance should always be done through term plans available with various insurance companies and not through money-back or children plan which are often available with insurance companies and sold by agents.
Health insurance – This indeed is a must. Indian general insurance companies have started offering health covers for disabled children and children with special needs. It’s important that parents cover themselves for their own health cover along with children. In case your child is not getting a good health cover for any reason, your employer sponsored group health plans will surely cover them. You can always rely on these covers.
Forming a trust – In the current era of nuclear families, it’s difficult to rely on support of joint families. To answer the above question, a trust can be a good solution. You may nominate a few trustees and also specify fees payable to them so as to take care of a disabled child’s financial needs in case of unfortunate demise of both parents. As trust formation and will writing are legally complicated, it’s a good idea to have a professional do it for financial planning for parents with disabled children or special children.
Investing in skill-sets for your special child
Our society is becoming more and more inclusive and with the government support, we are seeing disabled children are often absorbed in the main stream. It would be a great idea to invest considerably in creating unique skills in your child so as to become self-reliant. Government support is also available in many ways through different schemes, you may visit http://disabilityaffairs.gov.in/content/page/schemes.php for more details
The above list is not a comprehensive one, but can surely be a good starting point when it comes to financial planning for parents with disabled children. In case of such families, every financial situation and challenge is unique and hence there can not be a one size fits all kind of a solution. It would be prudent to compare and look up for various financial planner profiles and find out the right professional who may help you out.
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