It’s no secret that adolescence is a time of significant change and challenge. Teens navigate a
complex web of academic expectations, peer pressure, self-discovery, and increasing responsibility. Coupled with the hormonal changes of puberty, these pressures can often lead to anxiety, stress, and other mental health issues.

But imagine if we could alleviate some of this burden by ensuring our teenagers’ financial stability – not just now, but well into their future. This is where life insurance comes into play, a tool not often associated with mental health but one that holds the potential to offer substantial support in ways you might not have considered.

Understanding Life Insurance

Life insurance can sometimes seem like an impenetrable maze of jargon and figures, but at its heart, it’s relatively straightforward. Here’s a deeper dive into understanding life insurance and its key components:

The Basics of Life Insurance

Life insurance is a contractual relationship between you and an insurance company. You agree to pay regular premiums, and in return, the insurance company commits to providing a death benefit to your designated beneficiaries if you pass away.

This death benefit is a sum of moneythat can help your loved ones manage the financial fallout of your demise. This financial cushioncan assist in maintaining your family’s lifestyle, settling any debts, covering funeral costs, andeven addressing future needs like your teenager’s education.

Life insurance is more than just a product; it’s a long-term commitment to your family’s financial stability. While it requires thoughtful consideration and planning, the potential benefits it offers – financial security, investment growth, and peace of mind – can significantly support your teenager’s mental well-being.

Types of Life Insurance Policies

There are several types of life insurance policies, each with its unique features and benefits:

Term Life Insurance

This is the simplest and often most affordable type of life insurance. It provides coverage for a
specific term, typically 10, 20, or 30 years.

Under this, you can also opt for renewable term life insurance. Now, you’re probably wondering what is renewable term life insurance. It allows you to renew your coverage at the end of each term without undergoing a new medical examination. This means that even if your health condition has changed during the initial term, you can continue the coverage without facing potential increases in premiums due to your updated health status.

Whole Life Insurance

This type of policy provides lifelong coverage and has an investment component known as the policy’s “cash value”. Your premiums are divided into the cost of insurance and the cash value. The cash value grows over time and can be borrowed against or even cashed out during your lifetime.

Universal Life Insurance

It is a flexible type of permanent life insurance that combines a death benefit with a cash value component. It offers the ability to adjust premium payments and death benefits within certain limits, providing financial flexibility. The policy’s cash value accumulates over time on a tax-deferred basis and can be used for borrowing or withdrawals. Universal life insurance allows you to customize coverage to meet changing needs and may include investment options. It offers control and adaptability for long-term financial security.

The Impact of Financial Stability on Mental Health

Understanding the connection between financial stability and mental health is crucial. It not only underscores the importance of financial planning but also the role it can play in supporting the
emotional well-being of your family, especially your teenagers.

The effects of financial instability extend beyond the wallet. It can have severe mental health implications. This is because financial stress can lead to feelings of insecurity, worry, and anxiety. Over time, these feelings can develop into more serious mental health disorders, including depression and anxiety.

These effects are amplified in teenagers, who are already in a vulnerable phase of life. Adolescence is a period of immense change and growth, filled with hormonal shifts, evolving social dynamics, and academic pressures.

Financial instability in the family can add another layer of stress to this already tumultuous time. When teenagers are aware of financial strains, they may worry about their future, the stability of their living situation, and even basic needs like food and clothing. This constant worry can detract from their ability to focus on schoolwork, engage in social activities, and simply enjoy being a teenager.

Conversely, financial stability can act as a buffer against mental health challenges. When teenagers feel secure in their family’s financial situation, they can focus more on navigating their challenges, rather than worrying about potential financial hardships. This sense of security can help promote resilience, reduce the likelihood of mental health issues, and foster a healthier outlook on life.

Life Insurance: A Safety Net and Tool for Investment

Life insurance serves a dual purpose: providing a safety net for your family’s financial well-being
and acting as a tool for investment and savings. Let’s explore how life insurance can offer both
security and future-oriented benefits, supporting your teenager’s mental well-being along the
way.

A Safety Net for Financial Security

Life insurance ensures that your family is cared for financially in the event of your untimely demise. This assurance alone can greatly reduce your teenager’s worries about the future, alleviating the burden of financial uncertainty during an already challenging time. Knowing thatthere is a safety net in place can provide a profound sense of security, contributing to improved mental well-being.

Moreover, some life insurance policies, particularly permanent ones like whole life and universal
life insurance, accumulate cash value over time. This cash value can serve as an additional layer of security. In emergencies or unforeseen circumstances, the policy’s cash value or surrender value can be accessed, providing your family with a financial cushion when it’s needed most.

Investment and Savings Potential

Beyond the death benefit, certain types of life insurance policies offer investment or savings
components, allowing you to plan for your teenager’s future financial needs. Whole life and
universal life insurance policies, for instance, accumulate cash value over time.

As a parent, this presents a robust strategy to secure your teenager’s financial future. The cash value growth within the policy can be utilized in various ways. It can be borrowed to coverexpenses such as education or invested to further grow the value over time.

By incorporatinglife insurance as a savings tool, you provide a sense of stability and security for your teenager’sfinancial journey, significantly reducing anxiety levels and fostering their overall mental well-being.

Conclusion

Wrapping up, life insurance plays a vital role in supporting teen mental health. By providing a
safety net, financial stability, and investment potential, life insurance reduces worries about the
future, alleviates financial stressors, and fosters a sense of security.

This support allows teenagers to focus on their personal growth, navigate the challenges of adolescence, and promote overall mental well-being. Life insurance becomes a valuable tool in nurturing and safeguarding their emotional health for a brighter and more secure future.

Also read:

How Boxing Helps Teenage Mental Health

What Are Therapeutic Boarding Schools?

The post How Life Insurance Can Support Teen Mental Health first appeared on Help Your Teens.

For the average middle class family, the fees can be staggering. Even people of means may experience “sticker shock” at the tuition of these programs.

Due to the extensive costs of operating specialty schools with the appropriate licenses, credentialed staff, and certified educational accreditation, it is extremely expensive.

The average cost of private therapeutic boarding schools and programs is approximately $9,000 per month and are generally not all-inclusive. There is usually a separate processing fee which can range from $2,500-$3,500 and normally covers insurances, administrative costs, and other various charges.

Some programs will include the uniform in that fee. Other programs will have an additional fee for uniforms. When choosing a program, be sure to ask specifically what is included and what extra fees to expect. If a private program is less than $5,000 per month, please be sure to do your research.

Specifically when you are reviewing religious programs, they don’t always have to meet the same standards or regulations that credentialed schools do. You can locate treatment centers that have spiritual component, however many religious affiliated programs do not have any reporting agencies which can be very troubling. For more information on this, Dateline did a segment about it, Broken Circle.

Many programs offer a discount if tuition is paid up front or paid quarterly. This is an individual decision which is dependent on your financial circumstances and family’s needs.

Educational Loans for Healthcare

Behavioral Health Loan Information

• Lightstream Medical Loans Fixed rate, simple interest fully amortizing installment loans, no fees or prepayment penalties.
• M-Lend Financial Options include interest free credit cards (at no additional costs) and low interest installment loans for various credit ratings up to 84 month terms and $100,000. Particularly for addiction treatment. With no interest charges for an extended period of time, this can be a welcome bridge to financing.
• Prosper Lending Lends up to $35,000 for Health/Medical/Treatment at customized lending rates based on credit history, credit worthiness, and amount requested.
• Cross Bank Medical Financing Loan amounts range from $1,000 to $35,000. No loans are offered in Connecticut, New York, West Virginia and Vermont. An origination fee of 8% is included in the principal loan amount. The Annual Percentage Rate (APR) is the cost of credit as a yearly rate. The APR offered to you will depend on such factors as your credit score, application information, loan amount, loan term, and credit history.

You can also ask the school or program you are considering if they have their own lenders.

College Funds

If a child has a college fund, it might be a good time to use it. Although we expect (or hope) our children will want to go to college, getting your teen the emotional help they need is imperative. Without having coping skills, mental health wellness and social stability – it will be extremely difficult for them to be successful in higher education – whether it’s college or a trade school.

If you have a 529 Plan, ask your financial advisor or accountant for more information about withdrawing funds.

When the time comes when they are ready for that step and you have exhausted your educational fund, there are always grants and scholarships for which to apply.

Individual Educational Plan (IEP)

Does your child have an Individual Educational Plan (IEP) through your local school district? In some cases, this may defer some of your tuition costs in respect to the academic component of a boarding school or program. If you have an IEP in place for your child, it is important to ask the school or program you are considering if they work with IEPs and discuss the reimbursement process. For more information on IEPs, click here.

Home Equity Credit Line

Another alternative to financing a program is a Home Equity Credit Line. This can be beneficial to you in a few ways. Not only is a convenient way to access money that is needed, it can also be a tax deduction in regards to the interest payments.

Please keep in mind, sometimes the program you are sending your child to can also be a tax deduction in regards to medical expenses. The therapeutic and medical portions of the tuition can usually be deducted. Check with your tax preparer or accountant for more information.

Credit Cards

Credit cards, though carrying a potentially high interest rate, may be able to provide you with the initial monies to enroll your child until you are able to access an educational loan, credit line, or other means of payment.

Many parents will use a credit card which accumulates airline miles or other beneficial services and pay it off within the 28-30 days with their credit line or other financial means. This prevents you from incurring finance charges. It can also be a way to earn airline travel to use when it comes time to visit your child if they are out of state.

Medical Insurance

Contact your medical insurance provider to see if they cover residential placement. Some will cover the first 30 days or possibly the therapeutic portion of your child’s stay (generally one third of the tuition). PPO’s are typically more likely to cover some costs (specifically if you have out-of-network benefits), however it never hurts to check with your insurance company.

In searching for programs, you may want to ask the program if they accept your insurance or have experience with how much you could expect from your specific insurance company.  Having them process a verification of benefits (VOB) prior you enrolling your child or signing any contacts can be helpful in giving you a better idea of what your insurance will cover.  Not all programs will do this, but a majority of them will.

Denials Management, Inc. or SJ Health Insurance Advocates  are insurance advocates that can help you fully investigate your potential insurance options. Contact them directly for more information.

Medicaid, HMO or Tricare Insurance

For families that have Medicaid, HMO or a Tricare health insurance policy, and you would like your medical benefits to cover your child’s behavioral modification program — please contact the number on your insurance card and ask them for residential treatment centers in your network. This way you will have coverage. Self-pay programs start at about $7500 per month and up. They usually will only accept PPO insurance policies.

You can visit a single-child-insurance plan or some HMO’s offer single case agreements (SCA).

A Single Case Agreement (SCA) is a contract between an insurance company and an out-of-network provider for a specific patient, so that the patient can see that provider using their in-network benefits (i.e., the patient will only have to pay their routine in-network co-pays for sessions after meeting their in-network deductible (if any).

Single Child Insurance Policy for Mental Health

If you live in the following states, AZ, CO, FL, IL, KS, MO, NC, TN, UT, and VA, Cigna Health Insurance offers a single child mental health insurance policy. Open enrollment starts on November 1, 2020. You can also ask the school or program you are considering if they accept this policy.

Family or Employee Loan

Many families will borrow from relatives or, in some cases, employers have been known to contribute to the family. There is a chance that this could also be a tax deduction for individuals or companies. Don’t be afraid to ask the program if they offer scholarships; some do have limited financial aid, so it is important to ask.

Was Your Child Adopted?

The Adoptive Families Coalition welcomes and helps families with post-adoption challenges. They offer a unique plan to assist in meeting the high cost of therapeutic boarding schools and residential treatment centers. You can find the sponsorship application page at http://adoptive.org/ or Call (602)-740-7149 or (602)-390-0220.

If you adopted your child through foster-care, there may also be financial resources for you. Check with your social worker and the state your child was adopted in to determine your benefits. Some private teen help programs are contracted with state foster-care agencies to assist families of struggling teens.

Was Your Child a Victim of a Crime?

If your child is struggling due to the fact that they were a victim of a crime, there are funds available to help you pay for therapeutic boarding schools and residential treatment in every state. In some cases, the entire tuition or a majority of the cost can be covered. You must apply for assistance in the state in which the crime was committed.

We should note that the crime must be merely reported and have a case number, it does not need to have gone to trial or resulted in a conviction in order to be eligible for funding. The National Association of Crime Victim Compensation Boards has a list of all of the state crime victim compensation web sites where you can begin to apply for funding for a therapeutic boarding school and residential treatment center.

P.U.R.E. does not offer any scholarships or financial aid.

If you are searching for free programs or programs that accept Medicaid, please contact your Medicaid provider for a list or programs in network. Your local United Way may also have resources for you.

DISCLAIMER P.U.R.E. makes no claims to the accuracy of this content and makes no warranties or guarantees that the information will result in funding or even potential funding. This information is not intended as financial advice, and P.U.R.E. is not responsible for the financial choices you make based upon this information. We highly recommend that you consult with a registered financial advisor or your accountant. Also, please take into consideration the entire breadth of your family’s financial obligations before selling any of your assets or entering into any kind of loan agreement, whether it be a personal or institutional loan.

P.U.R.E. is not compensated by any financial organizations on this page or otherwise. This page is strictly for informational purposes.

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If you are struggling with your teenager that’s causing family conflict and you have exhausted your local resources, learn more about how residential treatment can help your troubled teen. Contact us today for  a free consultation.

The post How Do Parents Afford Therapeutic Boarding Schools first appeared on Help Your Teens.