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Adoption insurance helps cover costs and losses associated with adoption. It can be discussed with counselors or adoption agencies, and policies can vary in cost and coverage. It can also reduce the risk of only having one adoption opportunity.
Adoption insurance is an insurance product available to prospective adoptive parents to help cover costs associated with adoption, as well as losses that may occur when an adoption fails. This is a highly specialized type of insurance and may not be readily available. Parents preparing to adopt can discuss adoption insurance with a counselor or adoption agency representative for information and advice on the best policy for their needs. An insurance agent can provide a referral if your agency does not offer this product.
The adoption process can be time consuming and expensive. Parents are usually required to pay for a home study and may also have costs such as travel, maternity costs for the birth mother, etc. Although adoptive parents are prepared to pay these costs as part of the adoption process, sudden expenses can arise and an adoption insurance policy can help cover them. A common approach is to allow policyholders to borrow against the policy value to pay expenses.
Adoptions can fail for a wide variety of reasons, and this can be a concern for adoptive parents. They may spend a considerable amount of money on an adoption that is not approved, and this could make it more difficult to pursue a second adoption. Adoption insurance will reimburse the parents for these costs so they can start the process over again. This can reduce the risk of only having one adoption opportunity due to high expenses.
The cost of an adoption insurance policy can vary. Policyholders will need to provide certain information to the insurance agent and can choose from several levels of coverage. If they are not sure what type of coverage they need, the insurance representative will usually give them advice. More comprehensive coverage is more expensive, but could be a cost-effective decision for adoptive parents who can’t afford to take the loss if an adoption doesn’t work out.
Some adoption agencies may have a preferred insurance partner or recommendations based on your adoptive parents’ past experiences. Their staff can provide information on available policies along with contact information for various insurance companies. It’s always a good idea to get quotes from at least two companies to learn more about the range of options available before making a decision. A company may offer better coverage or a much more affordable policy option.
Smart Asset.
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