General queries how to approach financial planning for a special child’s future

Every family has concerns about the needs and care of their child in their absence. This concern requires urgent attention especially in families with a child who has special needs. It is good to be prepared to ensure the child’s future is secure in the absence of the primary caregiver. We present to you a financial planning awareness series about various processes that you need to be aware of when securing your child’s financial future.

Part 1 of series – Tips on how to approach financial planning for your child’s secure future

DISCLAIMER: Please note that this guide is for information purposes only. Please consult a financial advisor for any legal consultations or advise pertaining to your  financial planning needs.

This guide is part of a series that introduces you to key processes you need to know for financial planning.

1. Whom should I talk to for financial planning?

You can approach:

• A financial planner (individual or firm) who understands the needs of families with special needs.

• An estate planner, who can help create a Will, Trust, Guardianship documents, and Letter of Intent.

• A lawyer experienced in disability or estate-related cases. They can draft legal documents but may not advise on full financial planning.

2. What employer benefits should I check for?

Some common employer benefits to consider:

• EPF (Employee Provident Fund)

• Superannuation (for future pension)

• Gratuity

• NPS (New Pension Scheme)

• Group Life Insurance, Health Insurance, and Disability Insurance

These can help you build savings and manage risks.

3. Who can be the Executor of the Will, and why is it important?

• Anyone – family, friend, relative, or even a company can be appointed.

• The Executor makes sure the Will is followed properly.

• They oversee the probate process (if needed), and manage the assets until they are passed on to the right person.

• If no Executor is named, the court will appoint one.

4. Do I need to register the Letter of Intent (LOI)?

• No, an LOI is not a legal document.

• It acts like a diary or guide that shares important details about your child’s daily life.

• It is written for the future guardian and helps them understand your child’s needs and preferences.

5. Can a grandparent or family member give inheritance directly to a child with special needs?

• While it is legally possible, it is not recommended.

• If the child cannot manage the assets independently, it is safer to route inheritance through a Trust.

• If no Trust is set up, passing it to the parents is usually better.

6. Are there life insurance policies for children with special needs?

• LIC had two policies (Jeevan Aadhar and Jeevan Vishwas) available until 2014.

• Currently, no such specific policies are available.
   

Note: We are constantly updating this information. If you know of any current policies, please email us at contactus@nayi-disha.org or leave a comment.

7. Should I declare my child’s disability in the health insurance plan?

• Yes, you must declare it.

• If you don’t, and it’s discovered later, the entire family’s policy may be cancelled.

• Always be transparent when applying for insurance.

8. What is a disability certificate, and why is it needed?

• It is a legal document that confirms your child’s disability.

• It is required for many legal processes, such as applying for a legal guardian certificate.

• It is useful during all stages of financial planning.

9. Is a disability certificate required for making a Trust deed?

• No, it’s not required to create the deed.

• But you may be asked for it during Trust registration.

• It’s best to have one ready for any legal procedures.

10. What is the Swavalamban health insurance scheme, and how is it different from Niramaya?

• Swavalamban is meant for persons with disabilities (PWD) themselves.

• Niramaya is a scheme that caregivers take for their child or dependent with a disability.

• This is a key difference between the two.

Need more support?

Nayi Disha’s Know Your Rights (KYR) Program is here to guide you. Through KYR, you can:

• Understand government schemes

• Access financial support options

• Learn about legal rights

• Get connected with resources that support your child’s future

DISCLAIMER: This guide is for information purposes only. Please consult a qualified financial advisor or legal expert for specific guidance.

If you’re seeking more information and guidance on this topic and related areas, Nayi Disha’s Know Your Rights (KYR) Program is here to support you every step of the way. By joining, you’ll gain access to valuable resources on government schemes, benefits, financial support, legal rights, and more, all aimed at securing a brighter future for your child. To learn more, visit our chatbot by clicking this link: https://bit.ly/4dJVCP3, or simply type ‘KYR’ on our helpline number 844-844-8996.