Persons With Disabilities
Asked on 17 Nov 2019
If I am a caregiver of a child with autism, is it possible for me to get a Critical Illness coverage for myself? Just so that I am able to leave something for my child in the event where I passed away.
What about my dependent? Is she able to get covered by any form of insurance as well? Thank you.
That's a great question! LIke what the others said, it can be real difficult buying insurance for your child with autism. If you are looking for unit trusts available for your child in an event you pass away, you can take a look at the SNTC Trust, and the SNTC Savings Scheme! You can read more about the different type of help you can get here: https://blog.seedly.sg/money-fm-pwds-grants-employment-and-unit-trusts
You can also find out more about the SNTC trust here: https://www.sntc.org.sg/Pages/Home.aspx
While it may be difficult buying insurance for the child, it is of utmost importance you get yourself covered with as much as the insurer is willing to give you.
Right now, if you are the main caregiver, the child is a critical dependent that would be dependent on your income or another source of income for their entire life. Without a sustainable and reliable means for earning an income for themselves, you have to make sure to protect yours and continue this source of income even after you may pass.
I'll personally buy as much life insurance and critical illness cover the insurance company will give me, set up a trust or a foundation, convert my insurance payout into an immediate annuity that will turn the lumpsum into a stream of perpetual income and have the trustee support the child aka the beneficiary for the rest of their life.
For yourself - the underwriting would look at your own health condition so no issues with CI coverage; the SA would normally be benchmarked against income so if you are a full time caregiver (no other income) there maybe a query but if you can justify the SA requested (as related to the needs of your dependent) - then should be fine.
For the child - this would be definitely non-standard life; I am not an underwriter so don't know what the UW manual guidance would be - easiest is to just apply and see what is feedback like.
It is difficult for persons with disabilities to get insurance, most insurance providers will not provide coverage for a child with autism.
I would recommend you speaking to an estate planner to do some future planning beneficial for yourself and your dependent. Along with that, make sure you do your Will as well. In it, testamentary guardianship should be covered, wherein you instruct that should you no longer be around, who is to care for your dependent. Along with that, should you worry that your child is unable to handle a lump sum inheritance, you could also instruct for a monthly payout to your beneficiary.
In most cases, my firm would also urge caregivers like yourself to accompany the will with an LPA (lasting power of attorney). In the event where old age catches up, many Singaporeans find themselves lacking mental capacity such as dementia. In such instances, appoint someone to also care for you in terms of your personal welfare along with property and affairs.
All the best, let me know if you require assitance on any preparation, I would be happy to help.