1. Special Needs Chapter 13 Tools & Techniques of Financial Planning Copyright 2009, The National Underwriter Company1 Special Needs Special Needs require knowledge of taxes and Federal and state programs to help clients with –Disabilities –Terminal illness –Special Needs Dependents

2. Special Needs Chapter 13 Tools & Techniques of Financial Planning Copyright 2009, The National Underwriter Company2 Disabilities Financial Planning can help people with disabilities lead more productive and satisfying lives by using available sources of funds to provide –Medical care –Transportation –Subsidized training –Additional funds for living expenses

3. Special Needs Chapter 13 Tools & Techniques of Financial Planning Copyright 2009, The National Underwriter Company3 Sources of Funds for Disabilities Disability insurance –Definition of disability Own occupation Any occupation Modified own occupation –Elimination period –Term of benefits –May require acceptance of training Social Security –Difficult to qualify as disabled Medicare/Medicaid benefits –Medicaid requires indigence as defined by state

4. Special Needs Chapter 13 Tools & Techniques of Financial Planning Copyright 2009, The National Underwriter Company4 Financial Considerations During Terminal Illness How much will be covered by insurance? Are there lifetime maximums under the insurance policy that may be reached? What happens to the medical coverage if the employee decides to leave work? Are experimental treatments covered? Can the individual qualify for disability benefits under an existing policy, Social Security, or both?

5. Special Needs Chapter 13 Tools & Techniques of Financial Planning Copyright 2009, The National Underwriter Company5 Non-Financial Considerations During Terminal Illness An advance medical directive (living will), which states what medical treatments will and will not be accepted. A health care proxy (health care power of attorney), which names another person to make medical decisions in the event that the client is not able to do so. A power of attorney, which will allow another person to act on the client’s behalf in any legal, financial, business, investment, or other matters stipulated in the document.