Parents – please resist the natural urge to avoid this article because you don’t want to think about the topic. The tool I share below could save you considerable stress if misfortune strikes your family.
What would you do if your child suddenly and unexpectedly became seriously ill?
If something happened to Sophie or Isaac I would want my wife and I to be able to quit work immediately and be by their side, full–time.
I wouldn’t want one of us to have to work just to ensure the mortgage and bills get paid.
I wouldn’t want to be dependent upon the generosity of family, friends and the community to get by.
I would want to be able to afford top health care.
I would want to stay in our home. The comfort and familiarity will be an essential aid to recovery, for us and the ill child. Moving home is an added stress we won’t want.
But with most families dependent on their income, where will the money come from to provide the freedom to make those choices?
Introducing children’s critical illness (trauma) insurance
Children’s critical illness insurance is also known as children’s trauma insurance.
Child critical illness insurance pays you (the parent or guardian) a lump-sum on the occurrence of one of a number of conditions, similar to how your own critical illness (trauma) policy operates. You choose how to use the lump-sum.
Most policies cover over 20 different illnesses including the ones you’d commonly think of such as:
- Paralysis, including paraplegia and quadriplegia
- Loss of limbs
- Blindness, deafness or loss of speech
- Severe burns
- Death and terminal illness
As with all insurance if the severity of the illness meets the policy criteria then you will be paid a benefit. With these policies the benefit will be paid as a lump-sum.
How do you get children’s critical illness insurance?
Child critical illness insurance is an optional add-on to the parent’s insurance policy. It can be an option to life, TPD or trauma insurance. So even if you don’t have your own trauma insurance policy you may be able to add child trauma insurance to your death or TPD policy.
Usually the child needs to be at least 2 years of age before you can add them to your policy, though I’ve seen policies with entry ages up to age 5. Even if your child is not yet that old when you buy your policy you can add the child trauma option when they are old enough (which is exactly what I did for my two children.)
Many policies are now offering maximum cover up to $200,000.
How much does it cost?
Premiums range between $200 and $300 per year per child for the sum insured of $200,000. You can choose to insure for a lower amount to fit within your budget.
At around $5 per week per child I consider that value-for-money peace of mind. Much more valuable than my car insurance.
Why you should consider children’s critical illness insurance
It doesn’t matter if you believe the likelihood of serious illness is low. The life and financial consequence to your family would be severe.
It is the severity of the consequence that makes the risk high enough to warrant managing the risk through insurance.
Get the protection then get on with enjoying your family time with peace of mind.