How to create financial plan for family with special needs child

Sonia and Vansh Kumar’s daughter, Sara, was diagnosed with traumatic brain injury shortly after birth. As they adjust to this reality, fears about funding Sara’s therapies, her expenses as an adult, and her care after they are gone weigh heavily on them. While emotional challenges persist, creating a financial plan can ease some of their anxiety. They have started saving for retirement. Vansh has life and health insurance, but they also have a car loan. How do they navigate these challenges?

Sonia and Vansh Kumar need to focus on three key areas: budgeting for Sara’s care, revising their financial plan, and estate planning for her future. They must account for all the expenses related to Sara’s disability, including therapies, tutoring, transportation, and nursing care. Since therapies are costly, they should fit these into their monthly budget and start a ‘special needs fund’ for her future care. Avoiding excessive debt is crucial as it could derail their financial stability.

The Kumars should review their life and health insurance coverage and increase the cover size. Both parents must have life insurance to fund Sara’s caregiving needs in their absence. Instead of focusing only on their retirement, they should prioritise building a childcare corpus for Sara. Additionally, they should explore health insurance and medicare options for individuals with special needs to reduce future medical expenses.


They must write a will to establish a trust, funded by their life insurance proceeds, to cover Sara’s medical and living expenses. They need to appoint a trustee to manage the trust, and a guardian to care for Sara, if they pass away before she becomes an adult. While immediate changes may be challenging during this emotionally and financially taxing time, having a structured plan in place will help them work towards a secure future for Sara.

Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.