Insurance Policies & Babies Dying From SIDS
According to the Centers for Disease Control, approximately 4,500 babies in the United States die each year unexpectedly. About half of these deaths are attributed to SIDS, or Sudden Infant Death Syndrome. Losing a baby is devastating, and the last thing you will want to do is argue with an insurance company about whether SIDS is a legitimate claim for a life insurance benefit.
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Life Insurance Planning
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Life insurance planning is important for all family members, including infants and children. Sometimes, parents question whether they should invest in life insurance for their children. Some financial advisers do not see a need for life insurance for children, while others consider it an essential part of financial planning. Losing a baby is a traumatic event. Life insurance for your baby can provide the financial relief so the parents can pay for the funeral and replace lost income while you take the time to mourn.
Filing a Claim
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To file a claim for the loss of your child, you should first contact your insurance agent. He will be able to help you through the process and tell you what forms will need to be filed. He should guide you through the entire process and make this as easy on you as possible. It is your agent's job to help you at a time like this, so don't feel like you are imposing or asking him to do something unreasonable. Your insurance agent will also be able to tell you if your life insurance policy had some sort of exclusion clause for SIDS. While this would be unusual, if the policy excludes SIDS, it means that the death benefit will not be paid, but you will be refunded any premiums that you paid to insure your baby.
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What to Expect
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You will have to provide a copy of your baby's death certificate to the insurance company. Usually, the funeral home will take care of ordering these for you; you will just have to tell them how many you will need. You will need an original certified copy of the death certificate for each insurance company--a photocopy is not acceptable. If you are unsure, ask your human resources manager if your child was a part of a group life insurance policy that may be provided by your employer. Also, order a copy of your baby's death certificate to retain with your personal family records. When the insurance company receives the claim, it should not take long to process the claim. Unless the insurance company sees something suspicious in the medical examiner's report, it is unlikely it would pursue some sort of independent investigation.
Family History of SIDS
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If you have a family history of SIDS, or if you have previously lost a child to SIDS, you may want to consider using an apnea monitor. An apnea monitor will alert you if your baby stops breathing. More than likely, this expense will not be covered by your health insurance policy, but your health insurance agent or human resources director can help you with this information.
Tax Implications
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When the insurance company pays the death benefit, it will not change your tax bracket. Life insurance proceeds are tax-free. Although the death benefit will never replace your baby, it can ease the financial stress related to your loss of your baby.
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