My Son is 11 yrs old and is in the autism spectrum. What kind of financial planning i should specifically do to cover his needs when he grows up ? . Are there specific insurance plans for autistic kids ?

Ans: Your awareness and forward thinking are truly appreciated. Financial planning for a child on the autism spectrum needs extra care and detail. You not only plan for education and living expenses but also for long-term support and independence. Let's look at the solution from all angles.

Understanding Your Child’s Future Needs

Your son is 11 years old now.

He is on the autism spectrum.

His support needs may change over time.

Some children grow to be independent.

Some need lifelong care and support.

Planning must be flexible to adapt with time.

His long-term security must not depend only on your presence.

Financial plan should give him protection, stability and dignity.

Step-by-Step Financial Framework for Special Needs

You need a separate structure only for your son.
Let’s build this framework in parts:

Basic Protection

Core Investments

Long-Term Legal Structures

Special Health Needs

Emergency Planning

Parent Retirement with Special Child

Let’s go through each area in detail.

Basic Protection Comes First

Life Insurance for Yourself

You must have sufficient term insurance.

Rs. 2–3 crore or more if needed.

If something happens to you, this fund must care for him.

Avoid investment-based life plans.

Use pure term plans with high cover.

Make sure the nominee is structured properly.

Use a trust structure to manage claim amount later.

Avoid making your son direct nominee.

Health Insurance for Entire Family

Continue individual health insurance for all family members.

Make sure sum insured is enough for high medical costs.

Check if your son’s policy has special clause or exclusion.

Some policies exclude autism under mental conditions.

Speak to insurer and confirm.

Add a super top-up for Rs. 20–25 lakh.

Future medical costs may rise sharply.

Personal Accident Insurance

Take a personal accident cover for yourself.

It covers disability and income loss.

Your income matters most in your son’s life.

If anything affects that, your plan gets disturbed.

Core Investments for Your Son’s Life

This is the most important block in your plan.

Create a separate goal fund for your son.

This fund is for his living, learning, and care.

Begin monthly SIPs in actively managed mutual funds.

Choose multi-cap and balanced advantage funds.

Keep investing every month without fail.

Increase SIPs every year based on income.

Don’t mix this with your retirement or other goals.

Keep folio in your name, with goal written clearly.

Why Not Index Funds or Direct Plans?

Index funds do not protect downside risk.

They just copy the market movement.

Actively managed funds adjust to market conditions.

For a special needs child, safety matters more than cost.

Do not use direct plans.

They lack professional support and human guidance.

Invest through a MFD with CFP credentials.

CFP-backed guidance helps during market ups and downs.

Legal Structures to Protect His Wealth

This step is often ignored. But it is very important.

Create a Special Needs Trust

This trust will hold all money meant for your son.

It will operate even after your death.

You can appoint a trustee you trust.

The trust will manage all money and care.

Your son will be the sole beneficiary.

This gives lifelong protection of money and purpose.

Without a trust, legal access becomes difficult.

Write a Will

Make a legal will soon.

Mention the special trust in your will.

Allocate all assets properly.

Appoint a guardian for your son.

Choose someone who understands his needs.

Guardianship Certificate

Under National Trust Act, apply for legal guardianship.

This helps after age 18.

Without guardianship, access to benefits and accounts becomes hard.

Apply now when you have time and presence.

Plan for Special Education and Therapies

Education and therapy expenses are part of his development.

These expenses must be funded separately from your savings.

You can assign part of SIPs for this need.

Keep receipts of all therapy and school costs.

You may use these later for tax and planning benefits.

As he grows, vocational training or special jobs may help.

Have a fund ready for these also.

Emergency and Contingency Planning

Keep a separate emergency fund only for your son.

At least Rs. 3–5 lakh initially.

This covers sudden medical or caretaker cost.

Park in liquid or ultra-short mutual funds.

Add to it slowly every year.

Don’t use this fund for other family needs.

Retirement Planning Must Be Separate

You also need your own retirement fund.

This should be different from your son’s care fund.

Plan SIPs for this separately.

After your working years, your income stops.

But your son’s needs continue.

That’s why your retirement plan must be strong.

You can’t depend only on PPF or job pension.

Begin with equity mutual funds.

Move to safer options near retirement.

Support From Government and Schemes

Some schemes and benefits exist for special needs children.

Niramaya Health Insurance Scheme is one such plan.

It gives cover up to Rs. 1 lakh for autism.

Minimal paperwork and low premium.

Check with your local district disability officer.

Other Disability Benefits

Tax deduction under Sec 80DD and 80U.

Up to Rs. 1.25 lakh can be claimed.

Use this to reduce your tax and increase savings.

Your son must be medically certified under autism category.

Nomination and Beneficiary Planning

Never keep your son as a direct nominee.

Instead, keep your trust or guardian as nominee.

This avoids legal delay and misuse of funds.

Maintain one document with all nominee names clearly.

Share this with a trusted family member.

Start a Caregiver Plan

Think about who will take care of your son if you are not around.

Document daily routines, medical history, food preferences.

Prepare a simple care instruction note.

This helps others to support your son smoothly.

What Should You Avoid?

Avoid LIC, ULIP, or endowment plans for his future.

These mix investment and insurance.

Returns are very low.

If you hold them already, surrender and invest in mutual funds.

This gives better growth for long term.

Don’t invest in real estate.

It lacks liquidity and is hard to manage in emergencies.

Your son can’t easily use it in future.

How Much To Save?

Depends on expected support level.

Estimate living cost till his age 80.

Consider inflation, medical costs, support staff, caretaker.

Break this into monthly SIPs.

Review and revise every 2 years.

Finally

You have taken a strong first step by thinking ahead.
Your son needs love, care, and financial independence.
That comes only from a well-built, reviewed plan.
Focus on core goals—safety, income, healthcare and care continuity.
Separate his funds from other life goals.
Build a solid trust and legal foundation.
Avoid weak or low-return products like endowment or gold.
Use mutual funds actively managed with SIPs.
Guide and review this plan with a Certified Financial Planner.
Your presence today will bring your son peace tomorrow.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment