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Protecting Family and Children with Survivorship Life Insurance

Contrary to what you might have heard, survivorship life insurance is not just for affluent married couples who want to dodge estate taxes. While survivorship insurance does serve valuable estate-planning functions, its usefulness does not stop there. Second to die life insurance may also be the right choice for partners with a dependent child with special needs. Survivorship life can protect family members who require special care and will need proper funding for that care. Read on to learn more about the family protection functions of survivorship life insurance policies.

How Can Survivorship Life Protect My Children?

Usually, children either reach the age of majority or complete college and become financially independent from that point forward. For those children, a straightforward, traditional life insurance policy is usually sufficient. On the other hand, some children remain dependent upon their parents financially long after reaching the age of majority because of special needs. These children might have a physical, cognitive, or emotional disability that precludes them from supporting themselves. In this case, standard life insurance is not enough to protect family members requiring long-term support.

For the level of family protection required by the parents of children with special needs, survivorship life insurance is an excellent option. Once both policyholders (typically the childs parents) die, a survivorship life policy can fund the lifelong care the child with disabilities needs. If you're a parent wondering how can I protect my children, then survivorship life is the policy for you.

Family Protection for Long-Term Care

A child with special needs will require long-term care and support that no ordinary life insurance policy can provide. Survivorship life, on the other hand, allows parents to create a dedicated pool of money to care for a disabled child once the parents pass away. Parents can even structure the policy to protect family members with disabilities who also receive government assistance. An attorney or accountant can assist you in structuring a survivorship life policy with the proper beneficiary and ownership designations so your child does not lose his/her government benefits.

Whats more, you child with disabilities will receive the maximum amount of inheritance possible with survivorship life insurance. Survivorship life absorbs or avoids most estate taxes, which means the government will not be able to cut into your special-needs childs future funds and income stream. You can enjoy the peace of mind knowing the policy you have chosen offers the highest level of family protection possible.