Listening to Ben Fordham on 2GB yesterday about issues parents are having with their children and the NDIS got me thinking about insurance options for my children. I’m not talking about the families private health insurance but other insurances like disability or trauma. Are they within the blanket policies of parents, what options are available?
There is child trauma insurance that will pay a lump sum in the event that your child suffers one of the listed critical illness conditions. However, this has an entry age of 2 and children that have a disability from birth, won't be eligible for this.
OneCare has a additional benefit to a woman's trauma policy called baby care, this is an optional extra that costs more $, but will pay for a number of pregnancy related issues and in the event the child is born with a disability according to the definitions in the policy.
I hope that helps.
As Glenn mentions child trauma policies are what we typically recommend.
There are some retail life, TPD, trauma policies that have included benefits should something happen to your child - typically these are quite small amounts of insurance in the order of $15,000 or so.
There are a number of different options available from the major insurance companies.
The above 2 responses are correct and some provider's have a minimal amount of automatic coverage in the Trauma portion of cover they provide, however you can elect to increase this amount if you would like additional coverage usually up to a certain cap and normally through a questionnaire regarding your child's current health situation.
If you would like to review your current insurances or discuss options for yourself and your children, please don't hesitate to contact me on the below details.
Ronald Pratap | Principal Financial Adviser
RP Wealth Management
t: 02 9188 1547 m: 0434 502 079
a: Level 2, 351 Oran Park Drive, Oran Park 2570
Similar to what others have said, a type of cover called 'Child-Cover' pays a benefit up to $200,000 in the event of a child between the ages of 2 and 18 if they suffer a major trauma or dies. This can help with parents needing to take time off work to lessen the impact on them financially.
It's generally not offered through a 'blanket' cover with parents, and would need to added on top of your own cover. As a general rule of thumb, it would work out to be around $1.20 per month, per $10,000 cover so it's very cost effective.
I hope that gives you an idea of what is involved.