5 Steps to Financially Secure a Child with Special Needs

Raising a child is not easy. With growing age, the expenses related to a child will increase.Therefore, as a parent, you are accountable to plan your child’s finances wisely.

If your child has some special needs due to mental or physical conditions, you need to do proper financial planning for your son or daughter. Doing this will ensure your child’s financial well-being in case of your untimely absence.

If you are skeptical about how to invest money to ensure the economic stability of your son or daughter with special needs, then read on to learn about a few steps that can prove useful.

To secure your special child’s monetary security, you need to:

1. Estimate the expenses and needs of the child 

You should jot down all the costs like medical expenses, purchase of medical equipment, and the caretaker’s salary, among other expenditures. While considering all the expenses, keep inflation in mind and compute the total costs that can cover the child’s requirements even if you are not around. It will give you an idea of how much you need to save to ensure your child’s financial independence. There are different types of investment plans available in the market that can help you do effective planning and achieve your financial goals. Please consult with your financial advisor, as they can assist you in selecting the ideal investment instrument as per your needs.

2. Appoint a trustworthy person as a guardian 

If your special child does not have a sibling, it is wise to hire a faithful person as a guardian who can ensure that all the child’s needs are met. The person should also look after the child’s finances if something unfortunate happens to you. You can choose a reliable friend or a family member for this role. However, make sure that the person whom you select is not old. Appoint a person who can outlive your child. It is advisable to seek a legal expert’s help to solicit the draft of appointing a guardian.

3. Build up a trust 

You can establish a trust that can safeguard your property, jewelry, and bank balance and take care of your kid’s financial requirements after your absence. While setting up a trust, it is mandatory to hire a trustee. You will have to search for such a person who you can trust and is your child’s well-wisher.For this process, you will have to take a legal expert’s assistance.

4. Invest in life insurance 

Youneed tobuy a suitable life insurance plan and ensure that the sum assured will be adequate to meet your kid’s financial needs. Out of the different types of investment plans available in the market, it is advisable to invest your hard-earned money in a Unit-Linked Insurance Plan (ULIP).It offers the dual benefits of life insurance and investment. ULIP can help you earn a good return on investment when compared to other financial products. It facilitates goal-based savings and canfulfil your financial aspirations via investment in equity or debt funds. Besides this, it grows your wealth exponentially via the power of compounding. Simultaneously, you can consider purchasing a term insurance plan. It can provide a high sum assured at an economical premium in case of an untoward event, to ensure your child’s future financial security.

5. Prepare a will 

Write a will and list all the things you want your child to inherit when you are not there to take care of him or her. Avail of the assistance of a legal advisor to ensure that the will is foolproof. If you have appointed any trustee or guardian, make sure that you mention their responsibility. Createa will in such a way that it can safeguard the rights of your child.

It is of utmost importance to plan for your special kid’s financial future. However, accomplishing the monetary objectives is a tough challenge. Therefore, it is suggested that you put your funds in the right financial product to earn a good return on investment without that taking major risks.

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