When you have a child with special needs, there are so many other things to worry about. You don't want to think about life insurance and the costs that come with it, but you need to. The truth is life insurance is one of your most important factors and could help both you and your child in the future. Here's all you need to know about it.

Think About the Total Costs of the Insurance

You will need to determine the amount you want to be paid out in the event of your death. The usual amount is the cost of your mortgage, but the costs will be different for you. You need to consider the amount needed to be paid for your child's medical needs. This will include medications, therapy, and hospital requirements. You can take away the government benefits from the total to help bring it down.

Consider Whole or Universal Life Insurance

There are different types of life insurance available. Term insurance is the most popular one because it is usually cheaper. The problem is it will only cover you for a certain period of time. You'll need coverage for the rest of your life to make sure your child is protected. Look into a full life option, like universal or whole life insurance, so a payout is made regardless of when you die.

Open a Special Needs Trust (SNT)

A special needs trust (SNT) is essential. When life insurance is paid out, it is counted as an asset regardless of use. This would mean your special needs child wouldn't be able to get any government benefits or help. An SNT isn't counted as an asset, and you can arrange for all the life insurance benefits to go in here. The money is marked for help for your child after your death.

You will need to organize a trustee for this trust to make sure the money is used appropriately. Your trustee won't benefit from the money personally. You can state how you want the money to be used, giving you control over your child's care even after death.

Life insurance is a necessity when you have a child with special needs. Think about the amount your child will need for medical expenses and the best way to get that to them. You'll take a weight off your shoulders, not having to worry about what will happen financially when you are gone. Contact a company like Sunset Insurance Agency for more information.