A Financial Protection Strategy for Families That Have a Child With Down Syndrome

Document Type



annuity; Down syndrome; financial planning; impairment factor; simulation; widowhood effect

Identifier Data



Springer Publishing

Publication Source

Journal of Financial Counseling and Planning


Families that have a child with Down syndrome (DS) are facing financial challenges due to the increased life expectancy and daily life dependencies that he or she experiences. This article uses pediatric findings to supplement child mortality impairment assumptions and proposes a combination annuity pricing model to explore an annuity solution for families that have a child with DS. A Markov chain Monte Carlo simulation model is constructed with features such as a fixed death benefit, return of premium, different premium payment patterns, and the widowhood effect factor. The results indicate that such a product is generally affordable for families that have a child with DS to cover their child’s longevity risk and increased dependency needs.