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www.FredParent.NET • 15 Choosing the Right Agency When it comes to choosing which insurance company to purchase from, there really is no big mystery in terms of what it costs to insure an individual because all insur- ance companies use the same mortality tables to determine a premium, Smith says. However, Smith does advise looking at factors such as how the cash value grows, company restrictions, and whether or not the company guarantees a rate of return regardless of what the stock market does. "You want to look at a lot of the exclusions and restrictions that each insurance company places on their policies to determine whether or not you're comparing apples to apples," Smith says. "It pretty much costs all insurance companies the same to insure the same individual, but it's those added benefits or added restric- tions that you have to be careful of when determining which policy to purchase and from what company to purchase from." In addition, Goodwin suggests finding a life insurance company that's been well established and will be there to payout in the end. "[You] definitely want to look at a company that is going to be around for a while," Goodwin says. "[Maybe] they've been around for 10-15 years, but sometimes those companies are mismanaged. What sounds too good to be true [usually is]." Both insurance agents recommended researching companies before making a deci- sion, and that the type of plan each family should purchase should be determined on a case-by-case basis. " There's a lot of different ways to do insurance planning," Goodwin says. "It really depends on the individuals and what their needs are." Taking Care of Those with Special Needs Children Dan Goodwin, a financial advisor who works with special needs families to ensure the quality of life for their children after the par- ents pass away, stresses the importance of planning ahead. "We try to do a comprehensive financial plan for them with a spe- cial needs focus, so we look at everything: how do we pay down debt, how do we pay for retirement, et cetera," Goodwin says. "The ultimate goal is to make sure the quality of life of the individual with special needs isn't harmed or disrupted when the parents die." Goodwin meets with families free of charge to look at the life insurance policy on the parents who have special needs children. Together, they work to make sure funds will go to the right place (normally a trust) and be able to serve as a financial backdrop for the child when the parents pass away. Spouses usually name each other as beneficiaries. If the parents are both killed in a car accident, for example, all the benefits from the life insurance policy or 401(k) plan will go directly to the children and split evenly. "If one of those kids is receiving some type of government benefit— Medicaid waiver, or something like that—then they will cross over that $2,000 threshold for Medicaid and be kicked off benefits," Goodwin says. "That's really hurt a lot of families when that's happened." The ultimate goal is to make sure the quality of life of the individual with special needs isn't harmed or disrupted when the parents die. Find a life insurance company that's been well established and will be there to pay- out in the end.