For many of us, life insurance and trauma/critical illness cover is a no-brainer. We protect ourselves in the event of an unforeseen tragedy, to ensure that our family won’t suffer financially should the unthinkable occur. But what about insuring our children? They are our most precious assets, but do we really need extra insurance for kids?
Adrian, the ‘Bow Tie Man’, says the answer is an emphatic “yes”! “Parents often cover themselves for future financial security with Life or Permanent Total Disability (TPD) insurance,” says Adrian, “but consider the impact on your finances and household if your child was diagnosed with a critical illness.”
Aside from the immediate costs of medical expertise, treatment and ongoing are, Adrian says families should consider the financial implications if parents are unable to work whilst caring for their child. “If your child was diagnosed with a terminal illness, the last thing you want to think about is going to work and earning a salary,” says Adrian. “Your focus would – and should – be on getting the best possible medical care for your child.”
With Child Critical Illness Cover, your family’s finances are covered, so you can focus on your child’s recovery. Available for children aged from two years to 21, Child Critical Illness cover can range from $10,000 to $200,000 and covers a range of conditions. Adrian notes that it’s important to speak with a financial advisor to gauge the appropriate level of cover for your family.
“The child’s cover can often be secured under the parent’s insurance policy. It’s important for families to understand that conditions Child Critical Illness insurance covers – as the policies are often not as comprehensive as those for adults – and also to consider the level of cover appropriate for your family’s needs.”
And it’s not just medical expenses and time off work you need to consider. Travel and accommodation arrangements can be covered with a lump sum payment if your child requires specialist treatment away from home. And if the worst happens, financial support to allow you time to grieve without undue urgency to get back to work can be a godsend.
Adrian suggests families consider the following when assessing their insurance needs:
- How much money would you need to cover you regular expenses, such as mortgage, car payments, credit cards and any ongoing repayments?
- How much would you need to replace your salary if you required extended time off work?
- How much would you need to accommodate potential longer-term lifestyle changes, such as working less to spend more time with your family?
- How can you best structure your family’s insurance to provide maximum cover and cost-efficiency?
Speak with us to discuss the best options for you and your family, and review your cover annually to ensure any changes are accommodated.
A version of this article originally appeared in ‘Imagine Your Lifestyle’ Magazine, Issue Autumn 2013.