Life Insurance for Children with Cystic Fibrosis

Unfortunately, some children are born with severe medical impairments that lead to shortened life expectancies. Cystic fibrosis is one of those terrible conditions. It causes persistent lung infections that increasingly limit the ability to breathe. The digestive system and other organs can also be affected.

Parents of children with cystic fibrosis often incur significant expenses that relate to disease management. Treatment and regular trips to specialist medical centers quickly add up, often causing financial hardship. Many parents of children with cystic fibrosis purchase life insurance on themselves so that their loved one’s care can continue, should something happen to them.

But what about life insurance for the child with cystic fibrosis? Most life insurers are unwilling to offer coverage. Fortunately, there are exceptions! Some insurers assume a social responsibility by offering to insure the child - without medical underwriting! One highly rated brand name insurer offers a solution that can be customized to provide up to $150,000 of permanent life insurance on each child with cystic fibrosis - at standard premium rates.

If something were to happen to the insured child, the benefit can be used to fund funeral expenses, cover remaining medical bills, and/or reimburse the family for at least some of the out of pocket medical expenses that inevitably arise when caring for a loved one with cystic fibrosis.

Let’s take a closer look on how families with a child (or children) with cystic fibrosis can take advantage of this unique opportunity.

Maximizing Life Insurance for Children with Cystic Fibrosis

In order to qualify for the maximum available amount of life insurance, a two-step process is involved.

Life Insurance on the Parent(s)

The first step involves purchasing life insurance on one or both parents. Term or permanent life insurance policies are available.

A child rider can be added to the policies covering each parent. Rider increments are offered in units of $1,000, with a minimum of 5 units ($5,000 of benefit) and a maximum of 25 units ($25,000 of benefit). To maximize life insurance coverage on the child, each parent purchases a life insurance policy on their own life. 

The rider can be purchased on parents between the ages of 15 and 55. The insured child must be between 15 days and 17 years old. The rider can continue until the policy anniversary following the child’s 25th birthday. The rider can be converted into a stand-alone policy prior to rider expiration.

If both parents purchase the maximum number of units, each child can be insured for up to $50,000 of benefit.

Leveraging the Child Life Insurance Rider to Boost Coverage to $150,000

The child rider includes a very favorable exchange of policy provision that enables each child to qualify for permanent life insurance at standard rates for up to three times the original child rider amount!

In case both parents purchased the maximum available rider, $50,000, each child is enabled to purchase up to $150,000 of any form of permanent insurance the insurer offers when the policy exchange request is made!

If you are a parent with a child impacted by cystic fibrosis, talk to your financial advisor about this unique opportunity to acquire life insurance on your child without medical underwriting.

To identify a local licensed financial advisor who is familiar with the unique financial planning needs of families with children with cystic fibrosis, drop me a note and I’ll introduce you.