Which statement about insurance planning for individuals with special needs is false?

The statement regarding the consideration of one generation's needs in death benefits is misleading and aligns with the false nature of the question. Instead of focusing solely on the needs of one generation, especially when planning for individuals with special needs, a holistic approach is crucial. This encompasses considerations for long-term care, future needs, and the ongoing financial security of the individual with special needs, which may extend beyond just one generation.

When designing an insurance plan, it is critical to recognize that individuals with special needs may require lifelong support, thus necessitating an evaluation of benefits that can cater to their various needs over time. This complexity of needs requires an understanding that benefits should provide for the individual directly and potentially for future caregivers or family members as well.

The other statements accurately reflect common practices in insurance planning for individuals with special needs. For instance, term insurance being preferred due to the possibility of short-term needs addresses the immediacy of certain financial obligations. Additionally, life insurance can indeed be held in trust to ensure that the funds are used exclusively for the benefit of the individual with special needs. Lastly, individuals with special needs are often not made direct beneficiaries to preserve their eligibility for government benefits, such as Medicaid or Supplemental Security Income (SSI).