Planning With Purpose: Supporting Loved Ones With Disabilities Through Life Insurance
July 22, 2025
On July 26, 1990, the landmark Americans with Disabilities Act became law — and now we commemorate every July as Disability Pride Month. This month is more than just a celebration of progress and reflection, however. It also serves as a reminder that families caring for loved ones with disabilities face unique financial challenges. One way to protect those who need it most is through life insurance.
Life insurance is like a spoke in the wheel of a well-rounded financial plan that supports and helps those with disabilities long-term. This article explores the myriad ways life insurance can help provide a stable future for loved ones.
Understanding the Financial Needs of Loved Ones With Disabilities
For many caregivers, supporting a family member with a disability requires care that lasts a lifetime. With expenses like ongoing care needs, day-to-day living expenses, and future medical costs, planning ahead is essential.
The right policy can offer peace of mind and financial security. You’ll be able to ensure beneficiaries continue to receive medical care, housing, and other quality-of-life needs even when you’re no longer here.
How Life Insurance Plays a Role in Special Needs Planning
Whole life policies, in particular, offer several advantages to caregivers.
First, these policies accumulate cash over time and provide a death benefit. They can also be customized to align with long-term goals, such as setting up staggered distributions to your loved one.
In addition, the policy’s death benefits can be used to fund a special needs trust, which protects the beneficiary’s access to critical public aid programs like Medicare and Supplemental Security Income. Keep in mind that government benefits have strict asset limits and are tricky to navigate. Talk to an advisor to learn how your beneficiary can still be eligible for these kinds of programs.
Choosing the Right Type of Coverage
Permanent life insurance offers lifelong protection and builds value. As long as premiums are paid, coverage is guaranteed. And because premium payments are fixed, budgeting is predictable.
Term policies, meanwhile, may be suitable for families during high-expense years. These policies expire after a set time (say, 10 or 20 years) and offer coverage when you need it most, such as when children are still financially dependent. Term policies also cost less than permanent policies.
Riders and policy features can enhance flexibility and help you plan for unexpected circumstances. Long-term care riders, a child or spouse rider, accelerated death benefits, and a waiver of premium rider in the event you become disabled are just a few ways you can tailor your policy to fit your needs.
Next Steps for Families and Caregivers
If you’re ready to explore your options, consult with a financial advisor experienced in life insurance and special needs planning. Discuss setting up a trust so both the funds and the beneficiary are protected. Revisit your plan regularly, as needs evolve over time.
Disability Pride Month is a great time, midway through the year, to make sure you have a long-term, sustainable plan in place. This life insurance checklist includes important questions to ask so you can identify any gaps.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to explore your options.
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of “The World’s Best Life Insurance Companies.”
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.