Free Child Cover

It’s a natural desire to want to wrap your child in cotton wool and protect them from harm. But while cotton wool might protect them from sticks and stones, children are just as much at risk of suffering a traumatic event as adults.

To help families and children in times of crises, select insurance companies now offer ‘premium-free’ child cover with any purchase of select life insurance, trauma insurance or income protection policies. Basically, you can now cover your children for free by buying insurance for yourself!

Most Child Cover options on standard policies pay a lump sum if your child suffers a traumatic event. This means you can afford to take time off work, access the best medical treatment available, and ensure that your child is as comfortable as possible

Did you know?

• Over 300,000 children aged between 0-14 were seen in casualty 2004/05. (1)

• 200,000 children fall critically ill each year in Australia. (2)

• In 1999-2000, 7,094 children aged 0-14 years were hospitalised for cancer. (3)

• There are more than 1,000 children with spinal cord injuries in Australia. (4)

Cover For Children

Child Cover pays out a lump sum of up to $200,000 if something traumatic were to happen to your child, if your child dies, or if your child is diagnosed with a terminal illness. Importantly, you decide how you spend the lump sum payment. While money can’t buy a quick recovery, it can ease financial pressures you may face during an emotional time. Having Child Cover allows you to focus on your family when they need you most.

Key Benefits

Child Cover pays you a lump sum if your child suffers a trauma event.

• Cover can be attached (usually for free) to the adult’s life policy, income protection policy, or a stand-alone trauma policy.

• Most Child Cover policies have no limit on the number of children that can be insured on a policy.

• Depending on the insurer, your child will automatically be offered a continuation option on their policy once they turn 18 or 21. No evidence of health will be required to continue cover.

• You can apply for a minimum of $10,000 and up to a maximum of $200,000 worth of Child Cover for children between the ages of two and 16 inclusive. You can cover more than one child under this option, but each child must be insured for the same amount. This tax free lump sum payment can be used to meet additional expenses when you need it most.

Private Health Insurance Is Only Part Of The Story

If you have private health insurance, you may think this covers your family if your children have a medical problem. Private health insurance only covers hospital stays and some medical/extras expenses. It won’t cover rehabilitation, alterations to your home or long-term nursing care.

What Can Your Child Cover Lump Sum Be Used For?

The costs associated with a serious illness or injury can quickly add up. You can use a Child Cover lump sum payment to pay for all sorts of expenses, including:

• seeking specialist or overseas medical treatment

• home nursing care

• home or car modifications

• meeting other financial commitments, such as a mortgage, child care or school fees if you are notable to work while caring for your child.

Lachlan’s Story

Three-year-old Lachlan pulled a bowl of partly-made jelly onto himself. The boiling water from the jelly caused third degree burns to his face and hands. Fortunately, on Lachlan’s 2nd birthday, his parents took out a Child Cover policy. They were able to claim a lump sum payment of $50,000 which helped pay for:

• the top burns plastic surgeon in Australia

• a part-time nanny to look after their other child

• Lachlan’s mum to be able to take six months off work to be with Lachlan during the many operations.

Lachlan’s dad was relieved they had taken out Child Cover. Not only because they didn’t have extended family available to assist with extra child care, but the family was able to concentrate on Lachlan’s recovery without feeling financial pressures. He was able to continue running his own business, knowing the welfare of both his children was being looked after.

Sources

1 AIHW, Australian Hospital Statistics 2004-05.
2 AIHW and Australasian Association of Cancer Registries, Cancer in Australia in 2001, 2004.
3 AIHW and Australasian Association of Cancer Registries, Cancer in Australia in 2001, 2004.
4 Spinal Research Fund of Australia, 2003.

Free Child Cover Is Readily Available

xLife can help you find the right policy to ensure your child receives the best care should accidents or serious illness occur.

Contact xLife to find out more or to receive a free life insurance quote.

Disclaimer:

This article is not designed to provide personal financial or investment advice. The information provided is general in nature and does not take into account your particular investment objectives, financial situation or investment needs. We recommend that you speak to an xLife specialist financial Adviser before you make any decision regarding life insurance, total permanent disability insurance, income protection and trauma (critical illness) insurance. The statistics and figures presented in this report are based upon historical data, obtained from external sources. There is no guarantee or suggestion that markets will behave as they have in the past. Future results will be affected by political & economic events. Information is not directed to any particular persons investment financial objectives. Therefore, you must seek advice tailored to your individual circumstances before making any specific decisions.
xLife Pty Ltd ASIC No. 305213 is a Corporate Authorised Representative of Milennium3 Financial Services Pty Ltd.
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