Life Insurance for Children
Typically, the minimum age for most legal contracts such as life insurance or a mortgage is 18 years old. But the insurance world has recognised that protecting your family is just as important as protecting your own life.
Insurers will now include your children as part of your own life insurance and critical illness policy.
This means you can cover your children from birth until their 21st birthday for child specific critical illnesses with the option to upgrade your child’s cover to include additional conditions and complications during pregnancy if you intend to start a family. These policies will also pay out a smaller sum assured should your child pass away or become permanently disabled through accident sickness or injury.
Children's critical illness cover can be invaluable should your child be taken seriously ill. Research conducted in 2014 by Bliss.org.uk concluded that the average additional expense of a baby’s hospital stay is £2,256. This figure does not include any additional care that they may need such as travel to and from treatments, specialist equipment or any adjustments that may need to be made to your home.
Many providers now include children’s cover as standard with a small additional charge to upgrade. Adding a child to a new policy is incredibly simple and does not require medical information from your child at the time of application.
Furthermore, not only can you protect against the financial impact should your child suffer a serious illness or pass away, your children can also make use of the many additional benefits included in these types of policies. These include specialist nurses to provide in home care, bereavement counselling and medical second opinion services.
In 2018, claims for a child were the fourth most common claim on critical illness contracts for one of the largest providers on the market.*
With insurance companies offering children's critical illness cover for a minimal increase in premiums – and in some instances included free of charge, it’s definitely time to talk to FOCUS about protecting your children's future.
*Royal London Claim Statistics 2018
If a child is ill, this can put financial strain on a family as well as an emotional one. Children's Critical Illness Cover can provide financial support to help you meet any extra costs so you can focus on caring for your children.
Features and benefits of Children’s Critical Illness Cover:
- Natural, legally adopted and stepchildren, as well as any children the policyholder may have in the future can usually be included. Most providers will include children aged between 30 days and 18 years old, or 21 if in full time education.
- The amount of cover varies between insurance providers but is usually the lower of £25,000 or 50% of the sum assured under the policy. However, some providers offer different levels of cover which can be selected specifically for your children.
- Your main Critical Illness Cover won’t usually be affected by any children’s claims paid out, so if you make a claim for Children’s Critical Illness Cover, your own Critical Illness Cover will remain in place.
- Additional benefits such as child's death benefit, hospitalisation cash benefits as well as access to medical second opinion and specialist nursing services are often included.
Based in Oxford, FOCUS is a leading life insurance broker and can provide bespoke solutions to protect your world.