October 3, 2017


happy family

Child Cover

Parents often worry about the consequences of their children suffering a serious illness. Not only is there the inherent fear of a child suffering pain and ill health but there can also be financial implications, particularly if a parent has to give up work to become a full-time carer.

We are often asked by parents whether they can arrange insurance for their children. Whilst it isn’t possible to arrange a stand alone policy for a child, we can arrange a Critical Illness Cover plan for the parent which includes cover for dependent children up to the age of 18-21 (this varies depending on the insurer).

The insurance policy will pay out a lump sum should a child be diagnosed with one of the conditions listed on a policy document. A number of insurance providers have included an additional list of child specific conditions such as:

  • Cerebral palsy
  • Child’s diabetes mellitus Type 1 – requiring permanent insulin injections
  • Cystic fibrosis
  • Down’s syndrome
  • Muscular dystrophy
  • Spina Bifida.

Traditionally, the Insurance Provider will pay out a lump sum of up to £25,000 should a child be diagnosed with a critical illness. However, a handful of Insurers will increase this payment to £50,000 if the claim meets their particular criteria. This payment is not deducted from the policyholder’s sum assured.

In August 2018, Cover Magazine’s Cameron Clark Published a real life story based on a critical Illness claim paid by AIG Life:

A critical illness payout made by AIG Life has helped allow a baby to hear for the first time.

The payments were made after Rebecca and Ian Brett took out critical illness cover as a precaution prior to the birth of their son, Max. After he was born with substantial hearing loss in both ears, AIG Life paid out a lump sum of £25,000 which helped cover time off work.

The payment allowed The Bretts the time to pursue more radical treatments to improve Max’s quality of life. As a result, Max underwent treatment to install two cochlear implants, at the cost of £8,000 each, in order to allow him to hear. The additional money afforded Mrs Brett the time off work to take her son to the four appointments a month needed to help facilitate the treatment, as well as time off work post-surgery to care for him.

The implants, funded by the NHS, not only provide volume controlled hearing through an external processor that captures sounds and converts it into digital signal, but also features Bluetooth technology and a built-in microphone that allows direct communication through an app.

Ian Brett has spoken about the importance of investing in such cover, despite the preconceptions some might have about the industry. “There’s always this big fear that insurance companies won’t ever pay out and they just take your money,” he said. “This big stigma surrounds it and that is what everyone at my work, and my family, including my wife, were telling me, but I stuck to my guns and went through a financial adviser for life insurance and they helped me look at the market.

“AIG provided a successful claim to allow us the funds to support Max in so many ways that will define his and our future. When we got told it was successful, the person who told us was crying. She sounded like she was so happy to tell me that we had been successful that you could hear it in her voice because I had built that sort of rapport with her over that time that she knew how much this was going to mean to us.”

Some insurance companies offer additional benefits which also cover the policy holder’s children:

Global Treatment’ is available exclusively with any Aviva policy for an additional £4 per month. This benefit provides overseas treatment for specified illnesses and covers the associated costs. For example, Proton therapy is coming to the UK, but at the moment most patients needing this treatment are sent to the the US where there are more machines and greater funding.

‘Best Doctors’ giving you and your immediate family (spouse and any children in full time education under the age of 22) access to The Best Doctors in the world who can provide a second medical opinion and advise on diagnosis or treatment. This is a free service with Aviva and AIG.

In total, around 1,500 children in Great Britain are diagnosed with cancer every year (cancer research 2014), Legal and General have released figures saying that 72% of all children’s critical illness claims received in 2016 were for cancer.

Whilst all critical illness policies will pay out for the more serious cancer claims, some of the more comprehensive policies will also pay out additional payments for many types of less advanced cancer as well.

** Please note that pre-existing conditions are not covered.

At Future Proof we have a specially trained claims team, that provides each customer with a dedicated point of contact. Our team will advise, handle paperwork and if need be contact insurance companies on your behalf. Increasingly, some insurers have ‘Samaritans Trained Claims assessors’ to assist at the most important point in the insurance process.

For expert advice call our friendly award winning team on: 0800 644 4468

Please view our Guides for further information on what cover is right for your situation.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

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