Blog written on 30/05/2023
The idea of having a child who is diagnosed with a critical illness can be an overwhelming thought. Whilst this is a difficult subject, it is extremely important that we are prepared for the worst. Children’s cancer rates are going up. Cancer is the biggest killer of children aged 1-14 (Source 1).
Many parents experience a decrease in earnings when their child is diagnosed with a serious illness. Sometimes one parent has to stop working altogether to become a full time carer. Additional monthly expenses may also be incurred by parents while their child is going through treatment; for things such as hospital parking, food, & travel. Any adverse change to income or expenditure can be an issue when essential bills still need to be paid regardless of your personal circumstances.
What is Children’s Critical Illness Cover?
Children’s Critical Illness Cover provides a lump sum if a child is diagnosed with a critical illness that is specified by the provider. This lump sum can help ease the financial pressure and allow you to focus on the needs of your child and wider family.
This covers children that are natural (born to the policy holder), adopted, step-children and children that you are the legal guardian of.
Children’s Critical Illness Cover What are the cover options?
You can get both standard and enhanced policies. Standard being more basic, covering less illnesses and having lower pay-out amounts, and enhanced being more comprehensive, by not only covering more illnesses and having higher pay-out amounts, but also covering your child up to the age of 22.
The amount of cover available depends on the provider. Some allow you to select how much cover you want to have.
Advice is key when selecting the provider & cover amount. Protection professionals, like ourselves, have access to detailed comparison tools that rate policies and assists us to select the plan that is best for your individual circumstances.
Children’s cover is added to an adult protection plan such as critical illness cover, life cover or income protection. This gives you flexibility to choose the right cover for you. You are not limited to one policy type to benefit from the addition of children’s critical illness cover.
Extra perks (value-added benefits):
Some policies, especially enhanced plans, will include value-added benefits as standard. These extras vary by provider and are not always guaranteed to be available. Some are available either as standard, or at an additional cost.
Death Benefit: provides a lump sum if a child passes away (amount varies by provider).
Hospitalisation Benefit: provides an amount, worked out per day, if a child has a prolonged stay in hospital; this can go towards expenses like parking and food.
Pregnancy Benefit: can provide a lump sum for pregnancy complications, babies that are still born, and birth defects.
Conversion Benefit: some providers allow the child to convert the policy into their own policy (age varies from provider).
Global Treatment Cover (charges apply): provides you & your child with access to international facilities, doctors and treatment all over the world. Cover limits apply.
The information contained within this blog was correct at the time of publication (30/05/2023), and is subject to change. https://onerooffinancial.co.uk/protection_services/critical-illness-cover/
Source 1: gosh.org