This is a serious topic that every parent needs to understand.
Every week we are seeing in the paper, or on TV, families that are appealing to the community for assistance in raising funds due to a child that has been struck down by a serious condition such as Brain Cancer, Lymphoma, Leukaemia or any number of other horrible diseases.
This is such a trying time for families, and they soon realise that not all medical expenses are covered by the tax payer or even their health fund. Experimental and potentially lifesaving drugs that may be available overseas are certainly not.
Often their Last resort is to go to the community in their time of need, and request generous assistance. Often the community responds and the results can be in the 10’s of thousands of dollars.
In late 2015 you may have seen the ‘Angus’ Christmas Wish’ story run on the ‘A Current Affair’ program. If not, you can find it again here.
Angus's recommended treatment is a drug called Brentuxamab. Studies indicate it will reduce the chance of relapse by 40-50%. Unfortunately, it is not available on the PBS. The cost is $11,700 per dose @ 16 treatments which equates to a staggering $186,000. A cost that weighs heavily on the Cunningham family.
For me, the story also reinforces the impact of seeing an adviser. Sometimes we may forget the value of advice and how it can inform and empower you to protect the options, choices and freedoms of our family.
But it needn’t be this way.
Families seem to be uninformed about the very affordable insurance policies that exist in the marketplace for just these types of event. A Childs Trauma Cover policy pays out on these types of events (and many more), and provides much needed financial assistance in a great time of need and stress for a family such as this.
The Cunningham’s goal is to raise $100,000, but the premium on a Childs Trauma policy for $100,000 would have been around $18 per month. So even to cover 4 children that would be only $72 per month.
That is the price my Mother-in-Law pays for her 4 year old Labrador's pet insurance.
The reality these covers are much less expensive than other things that we spend money on, and if a parent did know that they exist then there would be no reason for them not to cover their children.
It is only a lack of information that keep most Australian children uncovered.
You now have the information.
What is Child’s Trauma Cover?
If a child suffers a critical illness, it is likely that their parents will take time off work and seek the best possible medical treatment. This is why Child’s Cover is so important for a family’s financial security, and is shy we always recommend our clients take some to cover their children in the event of an unfortunate extended illness.
Did you know?
- Over 150,000 children have a long-term condition (lasts over 6-months)
- On average 583 children are diagnosed with a cancer every year^, and
- Childhood cancer sufferers are at a substantial risk of developing at least one medical disability during their lifetime as a direct result of their therapy*.
With a Child’s Critical Illness Option that is attached to an Adult Trauma Policy, a sum insured can now be selected for any amount from $50,000 through to $200,000. Some insurers also offer a free extended amount between $10,000 - $25,000 per child when the parents are also covered for Life, Total & Permanent Disablement and Income Protection.
Here are the basics of what a Child's Trauma Policy is:
- Must be of age 2 – 18
- Normally from $50,000 - $200,000 of lump sum cover
- Paid on the diagnosis of a claimable illness/injury
- Also becomes a Life Cover policy
- Costs usually around $1.80 per month, per child for every $10,000 of cover. E.G $200,000 of cover for 1 child would be approximately $36 per month
This cover is usually used to cover medical costs, but also to replace parental income lost where one or both parents need to leave work for an extended period of time to assist the child in recovery.
Some illnesses and conditions that most Child Trauma policies cover are:
- Aplastic Anaemia
- Bacterial Meningitis
- Benign Brain Tumour
- Blindness
- Cardiomyopathy
- Chronic Kidney Failure
- Chronic Liver Failure
- Coma
- Deafness
- Encephalitis
- Heart Attack
- Heart Valve Surgery
- HIV Contracted Through Medical Procedures
- Intensive Care
- Loss of Speech
- Major Brain Injury
- Major Burns
- Major Organ or Bone Marrow Transplant
- Malignant Cancer
- Meningococcal Septicaemia
- Open Heart Surgery
- Out of Hospital Cardiac Arrest
- Paralysis
- Pneumonectomy
- Primary Pulmonary Hypertension
- Stroke
- Type 1 Diabetes
With most providers the Child’s Critical Illness Option has a continuation option to convert to an adult policy at aged 18. As no medical information is required for the events already covered, it also provides certainty of continued cover when otherwise the child may not be insurable.
For more information on Child Critical Illness cover contact Scott Butler of the Edge Specialist Advice Network for a complimentary financial health check consultation.
