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I'm researching an idea around a group legal plan for special needs kids. I want to make sure that nobody is doing this ? Therefore could you research new group legal plans and how their pricing structure works/how they make money? I know that employee benefits space Special Needs consulting is an up and coming benefit but is there anything else there? Finally since this kinda plays in the insurance space have we seen any riders or health care targeting this audience?
Hi! Thanks for asking Wonder to look at group legal plans for special needs children.
The short answer is MetLife is the only group legal plan with a specific offering for special needs families within its overall coverage. Below you will find a deep dive of my findings.
GROUP LEGAL PLANS FOR SPECIAL NEEDS KIDS
Generally, all evidence points to that there are no well-known group legal plans specifically targeting special needs kids or their families. It seems the majority of special needs families access assistance through their local employee wellness programs, using advocacy groups and resources, self-advocation or private consultants. Some group legal plans offer general family and education law advice, but none that specifically target just special needs as a special sub-sect. When employees do gain help for their special needs family at work, it's usually as a result of local initiatives like child care assistance, part-time benefits or employee assistance programs.
- Hyatt Legal Plans (MetLife): Hyatt Legal Plans offers services in family life, which would include consulting on special needs children. A testimonial from a special needs guardian/caregiver recommends the service for its comprehensive legal advice and financial planning. Hyatt's comprehensive services are around $20/month through payroll deduction (this gives the employee unlimited legal advice). Part of their offering is the PlanSmart® Financial Education Series, which has dedicated, trained employees on special needs planning (see the "life insurance" section below).
- Countrywide is another group legal plan where advice for special needs children would fall under their generic umbrella of their Personal Legal Protector Plan. Employers can cater their coverage to specific employee needs, so it would only be if the employer wanted to include family and education law matters in their coverage umbrella. Countrywide's pricing structure is flexible. The employer selects which specific legal benefits it wants to cover (and quantity), and the plan can be funded through: voluntary payroll deduction, cost-sharing plan, employer-paid plan or packaged with other benefits.
- Additionally, it seems that any employee assistance program (EAP) that offers inclusive legal advice would include limited advice and consultation on some special needs-related matters (as they tend to cover things like school hearings and family law). However, I could not find any program that offered a dedicated section or trained consultant on purely special needs matters.
HEALTH INSURANCE RIDERS FOR SPECIAL NEEDS KIDS
While health insurance companies are generally now required to cover children and adults with special needs, most do not include any specialized coverage or legal plans to help families. Some states still only require minimal coverage, meaning some families are still paying high costs to seek appropriate health care for their special needs children.
As a remedy, most families are encouraged to apply for Medicaid or a Medicaid waiver to make up the increased financial burden of a special needs child. Many families put this off, thinking the hassle of paperwork and long process is too much and not worth the effort. However, once granted, a Medicaid waiver can cover a lot of the out-of-pocket expenses that typical health insurance does not, plus respite care, behavior specialists, and so on.
Families are also encouraged to check their individual policies to see what happens when their special needs child reaches the age of majority.
Another angle to look at insurance riders for special needs is for the parents to consider disability or long term care insurance. If something happens and the parent(s) is unable to look after their special needs child, then this insurance will help cover any financial burden (as not only can the parent possibly not look after the special needs child if they become disabled, but they also do not have a child to rely on to look after them for free). This can be attached as a rider to a great number of health insurance plans, or some companies offer a stand-alone plan for stay-at-home parents.
- Tricare, a military personnel health plan offers its Military OneSource, a legal resource to help families. It offers telephone consultation, online help and face-to-face meetings to help with a variety of issues, including legal advice on special needs individuals. The service is included with all health plans at no extra cost.
LIFE INSURANCE
Life insurance for special needs children (and adults) is a growing niche of interest. Obtaining life insurance for this demographic group is considered extremely important and comes highly recommended. Many life insurance companies have a department or section specifically targeted at special needs individuals, helping families build plans to suite every contingency. Additionally, parents of special needs children need to consider their own life insurance, as there can be negative tax implications if a policy is not set up properly. Families should use a combination of a speciality special needs estate planner and a knowledgable life insurance agent to ensure their specific situation is catered for.
Special needs life insurance first started around 2000, as MetLife was one of the first companies to set up a designated unit. MassMutual also worked with The American College to set up a Chartered Special Needs Consultant training program in 2004. The program was initially only for MassMutual employees, but opened to the whole industry in 2014.
CONCLUSION
To wrap it up, MetLife is the only group legal plan to make specific mention of offering special needs-specific services. Other plans, like Countrywide, merely offer an umbrella of family and education law services, rather than a dedicated trained consultant on special needs matters. Special needs health insurance riders are also generally non-existent, as families are generally encouraged to seek Medicaid assistance to help cover the increased financial burden of a special needs child or disability/long-term care insurance to cover an event where the caregiver parents falls ill. Finally, life insurance is one segment where special needs families have been receiving specialized advice since around 2000, as many large providers are creating specially-trained departments to give comprehensive, focused advice to families with special needs children.
I hope this is helpful. Please feel free to ask Wonder if you have any more questions!