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Difference between revisions of "Adoption Insurance"
(Created page with "'''Adoption Insurance''': Sometimes referred to as "adoption cancellation insurance." This is insurance that is available for purchase by adoptive parents for some adoption ma...") |
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| − | '''Adoption Insurance''': Sometimes referred to as "adoption cancellation insurance." This is insurance that is available for purchase by adoptive parents for some adoption matters, which provides the policy holders with financial reimbursement of certain adoption costs, up to the purchased policy limit, that they have incurred in a covered adoption in which a birthmother changes her mind and decides not to place her child for adoption with the policy holders. | + | '''[[Adoption]] Insurance''': Sometimes referred to as "[[adoption]] cancellation insurance." This is insurance that is available for purchase by [[Adoptive Parents|adoptive parents]] for some [[adoption]] matters, which provides the policy holders with financial reimbursement of certain [[Adoption Costs|adoption costs]], up to the purchased policy limit, that they have incurred in a covered [[adoption]] in which a birthmother changes her mind and decides not to place her child for [[adoption]] with the policy holders. |
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| + | There are two basic ways insurance can be of benefit in the [[adoption]] process: to prevent excessive financial [[loss]], and as a source of funds to help cover expenses. | ||
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| + | ====Adoption Disruption Insurance==== | ||
| + | Often called "[[adoption]] insurance," [[Adoption Disruption]] Insurance (ADI) helps families within the United States who are adopting domestically to recover qualifying expenses if for some reason their [[adoption]] is disrupted or not finalized. | ||
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| + | Typically this is only available to families who are adopting a child under 2 years of age. There is only one option available at the present time: | ||
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| + | · There is an ADI policy underwritten by Philadelphia Insurance Company and endorsed by the insurance broker, Rose and Kiernan and promoted by the [[National Adoption Foundation]]. | ||
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| + | ====Borrowing Against Your Insurance Policy==== | ||
| + | Some types of life insurance [[policies]] allow the policy owner to borrow from the accumulated cash value in the policy, and this can be used as a source of funds to help pay for [[adoption]]-related fees. Some insurance companies continue to pay interest on the full cash value, but the interest you are required to pay on the amount you borrow may be more. Keep in mind that hand-in-hand with borrowing is repayment. If the policy owner dies before full repayment is made, the amount that has not been repaid will be deducted from the insurance benefits paid. Talk to your insurance agent and be sure to ask what, if any, penalties are involved. | ||
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[[Category: Glossary]] | [[Category: Glossary]] | ||
Latest revision as of 03:54, 13 June 2019
Adoption Insurance: Sometimes referred to as "adoption cancellation insurance." This is insurance that is available for purchase by adoptive parents for some adoption matters, which provides the policy holders with financial reimbursement of certain adoption costs, up to the purchased policy limit, that they have incurred in a covered adoption in which a birthmother changes her mind and decides not to place her child for adoption with the policy holders.
There are two basic ways insurance can be of benefit in the adoption process: to prevent excessive financial loss, and as a source of funds to help cover expenses.
Adoption Disruption Insurance
Often called "adoption insurance," Adoption Disruption Insurance (ADI) helps families within the United States who are adopting domestically to recover qualifying expenses if for some reason their adoption is disrupted or not finalized.
Typically this is only available to families who are adopting a child under 2 years of age. There is only one option available at the present time:
· There is an ADI policy underwritten by Philadelphia Insurance Company and endorsed by the insurance broker, Rose and Kiernan and promoted by the National Adoption Foundation.
Borrowing Against Your Insurance Policy
Some types of life insurance policies allow the policy owner to borrow from the accumulated cash value in the policy, and this can be used as a source of funds to help pay for adoption-related fees. Some insurance companies continue to pay interest on the full cash value, but the interest you are required to pay on the amount you borrow may be more. Keep in mind that hand-in-hand with borrowing is repayment. If the policy owner dies before full repayment is made, the amount that has not been repaid will be deducted from the insurance benefits paid. Talk to your insurance agent and be sure to ask what, if any, penalties are involved.