When considering personal insurances, often you may first think about protecting your household financially from unexpected events (e.g. a passing, sickness or injury) that may occur to yourself;
However, unfortunately unexpected events can also happen to your loved ones, which can have a similar result in terms of the financial impact on your household.
Due to this, in our animation, ‘Personal insurance for families‘, we touch on the concept of cross insurance, namely, insuring both heads of the household whether they be dual income earners or a sole income earner and a non-working spouse.Similarly, it’s also important to consider the financial impact on your household if your child was to unexpectedly pass away or suffer a sickness or injury. Common questions worth considering, especially regarding a sickness or injury, are:
- Do you have the adequate resources available to pay for any immediate and ongoing medical treatment, or home and/or care modifications that your child may require?
- How would you cope financially if you or your spouse needed to stop work to care for your child either on a temporary or long-term basis?
The medical events covered under a Child Trauma Benefit can range between insurers. In addition, the medical events covered usually are not as extensive as those under an ordinary Trauma insurance policy. As such, below is a list of some of the medical events that you may find covered under a Child Trauma Benefit:
|Child Trauma BenefitMedical Events|
|Benign brain and/or spinal tumour||Invasive cancer|
|Malignant bone marrow disorder||Skin cancer|
|Other serious events|
|Accidental HIV infection||Aplastic anaemia|
|Brain damage||Chronic kidney failure|
|Chronic liver or lung disease||Coma|
|Intensive care||Loss of hearing|
|Loss of use of limbs and/or sight||Loss of speech|
|Major head trauma||Major organ transplant|
|Multiple sclerosis||Muscular dystrophy|
|Paralysis (e.g. diplegia, hemiplegia, paraplegia, or quadriplegia)||Severe burns|
Things to consider
You may find that the Child Trauma Benefit:
- Is only available to your child if they are within a specified eligibility age bracket. For example, between 2 and 15 years.
- Has a cease date that often refers to a period just after the upper limit of the specified eligibility age bracket has been reached. In addition, this can also occur if the relevant Trauma insurance policy that holds the Child Trauma Benefit ceases.
- Has the capacity to be converted to an ordinary Trauma insurance policy for the child just prior to them reaching the policy cease date related to the upper limit of the specified eligibility age bracket. In this circumstance, the policy becomes their own; however, depending on the sum insured, underwriting may apply.
Guaranteed future insurability
You may find that the Child Trauma Benefit will not be paid in the event of one of the following:
- The medical event is caused by a congenital or pre-existing condition, an intentional self-inflicted injury, or attempted suicide.
- The medical event arises within three months of the commencement of the insurance policy.
Depending on the medical event that arises (e.g. type and severity), you may find that a partial or full payment is made under the Child Trauma Benefit.