Critical Illness cover and children – everything you need to know

Having a child diagnosed with a serious illness is something no parent wants to experience. It is likely to be a hugely stressful and emotional time, and so the last thing you want to be worried about is your financial situation.

To support families with ill children, many Critical Illness providers automatically include children’s cover when you take out protection for yourself.

Read on to find out everything you need to know about children’s Critical Illness cover.

 

Why might you need children’s Critical Illness cover?

If you’re considering taking out Critical Illness protection for yourself, it’s likely to be because you want the peace of mind that you’ll be financially supported if the worst happens.

You’ll want the benefit of a lump sum to help you replace income or pay for treatment. Or, a payout may simply mean you don’t have to worry about your finances while you focus on your recovery.

When it comes to children’s Critical Illness benefit, the reasons are essentially the same. By putting this in place you’ll know that, on a successful claim, you’d get a tax-free lump sum to help you through a difficult time.

You might use the money towards:

• Travel and accommodation expenses while your child has hospital treatment
• Childcare costs, perhaps if you have other children
• Replacing income if you have to take an extended period off work
• Adapting your home to aid your child’s recovery.

It’s a contribution towards your family’s finances that you can use as you need. And it’s a benefit that supports thousands of families very year.

Leading insurer Aviva reports that, in 2019 alone, they paid out a record £5 million for their Critical Illness cover children’s benefit. 263 families benefited from financial help when they needed it most, with an average payout of £19,602.

 

Most Critical Illness policies include children’s cover

When you take out an adult Critical Illness policy, most insurers will automatically include children’s Critical Illness cover as standard.

With most insurers you don’t have to add it on or pay extra. It isn’t stand-alone insurance policy. 

With many insurers, even if you don’t have children when you take out your own policy, if your family grows within the term of the policy, and your child becomes critically ill with a condition that’s covered, you can typically make a claim.

Some other useful facts to know about children’s Critical Illness cover:

• It normally covers natural, legally adopted and stepchildren
• As mentioned above, it will normally cover any children you might have in the future
• Children are normally covered from a month old until their 18th or 21st birthday (depending on the provider)
• A child will normally have to survive for 14 days after diagnosis of a critical illness covered by the policy before a claim is paid
• The maximum amount payable for most insurers under a children’s Critical Illness claim is £25,000, or 50% of your amount of cover, whichever is lowest.

A claim will not normally be paid if your child had the condition at birth, or they experience symptoms before they are covered.

 

Additional cover you may receive

As well as the ability to make a Critical Illness claim, some insurers will also offer additional cover.

Childcare benefit

If you make a claim under your own cover (for example, you are diagnosed with an illness covered under the policy), the insurer may pay out a sum towards childcare costs while you recover.

Family Accommodation Benefit

If your child spends nights in hospital in the three months immediately following diagnosis of one of the critical illnesses covered, many insurers will pay you a sum (perhaps up to £100 a night) to cover the costs of accommodation. There may be a limit on this cover.

Child Funeral Benefit

In the tragic event of your child passing away, an insurer may pay a sum towards the funeral costs. There is likely to be a limit to this (around £4,000) and there may be conditions to meet – for example, you may not be able to claim this cover if a Critical Illness claim had already been paid for your child.

Child Accident Hospitalisation Benefit

If your child is admitted to hospital with physical injuries, immediately following an accident, your insurer may pay a lump sum. Your child may have to be in hospital for a period of 28 consecutive days for this cover to kick in.

 

Leading insurer boosts children’s protection

While many insurers offer excellent benefits under their children’s Critical Illness protection, one leading insurer has recently announced they have enhanced their cover yet further.

Royal London has made changes to its Critical Illness cover to help improve protection claims outcomes for parents and their children.

Changes made include:

• The payout for enhanced children’s Critical Illness cover has increased from a maximum of £25,000 to £30,000. 
• The children’s death benefit and the payment for still birth has been doubled from £5,000 to £10,000
• For standard children’s Critical Illness cover, a new child death benefit of £5,000 has been added
• Parents will now also be able to protect their children on Royal London’s Critical Illness cover up until the age of 22, or 23 for those still in full-time education.

Jennifer Gilchrist, protection specialist at Royal London, said: “The recent improvements to our Critical Illness cover are essential to make sure we are providing financial support and the best possible outcomes for our customers. 

“No parent should ever have to experience the death of a child, which is why some of the changes are targeted at pregnant mothers and parents to help provide protection for themselves and their children in the best way possible.

“But insurance isn’t just about financial support at Royal London and, as ever, our Helping Hand service providing invaluable emotional and practical support is there throughout to listen, empathise and help people cope with their experience of illness or bereavement.”

 

Compare Critical Illness cover online

Putting the right Critical Illness protection in place gives you the peace of mind that financial support will be available when you need it most. It will ensure you receive a lump sum if you’re diagnosed with some types of cancer or multiple sclerosis, or you have a serious heart attack or stroke.

It will enable you to take time off work to focus on your recovery. It is particularly useful if you are self-employed, and your income might stop entirely if you’re not able to work.

As many insurers include children’s Critical Illness cover as standard, it’s also an excellent way of providing additional support in the difficult event of your child being diagnosed with a serious illness.

As Critical Illness experts, we can help you to find the right cover for you. We can make sure that any policy you choose covers the widest range of illnesses and includes the right children’s coverage also.

We work with dozens of the UK’s leading insurers and can scour the market to find the most appropriate cover for you, at the best price. We even take a lower than standard rate of commission from providers so we can pass these savings on to you.

Read more about Critical Illness cover and how it can benefit you or speak to one of our experts for help.

Compare Critical Illness cover online now.