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Do you need a better reason?

Children get sick—that’s a difficult part of life for every family

But every now and then a child can get really sick and suffer a significant trauma or illness that affects the entire family.

Read in this article

We believe the real value of personal insurance is in protecting those you care about the most by giving you additional support and resources to draw upon when needed.

  • While it’s not something we like to think about, sometimes it’s our children that face a serious illness, and not ourselves.

Helping you to focus on your child’s recovery

This is where Children’s Crisis insurance can bring significant value and support to a family with a very sick child. This is an issue that every parent, Uncle and Aunty needs to at least know about, so you can make an informed decision.

How does it work

In the same way, an adult Critical Illness Insurance policy will pay the insured adult if they suffer one of the specified insurable medical events, a Children's Critical Illness insurance policy is designed to pay the insured amount if the insured child experiences one of the specified medical issues. While money can't buy a quick recovery, it can ease the financial strain that emotionally difficult times can bring.

  • An Adult Critical Illness policy will usually cover about 40 major medical crisis, including the major conditions of heart attack, cancers and major accidents.
  • A Children's Critical Illness policy will usually cover a lesser number of specified health issues.

When does it pay?

These crisis policies are designed to pay out a lump sum if the person insured, (and this can include your child) is diagnosed with a severe injury or illness specified in the insurance policy.

We call it recovery money

It’s really about providing you with the financial support to put your focus where it’s needed in these difficult times—on your child and their recovery.

What's the immediate benefit?

This can help you afford better medical treatment and allow you to afford to take time off work to be there for your child.

Even though children face many of the same health risks as adults, they may not have equivalent insurance cover.

What do people use the insurance money for?

Whatever is needed to help you and your family recover faster.

Not all families live near a children’s hospital where their children might be hospitalised if they become ill. Not all families have Grandparents who are able to help. Not all families have two parents in the same home.

A lump sum paid from a Children's Critical Illness insurance policy can help towards the family’s travel and accommodation arrangements so you’re able to be at your child’s side when they need you most.

Children recover faster when they can have their parents with them by their side.

A lump sum payment can also help replace a parent's lost income so you can take time off work to care for your child, pay for unplanned medical and rehabilitation expenses, or if the worst were to happen, take time to grieve as a family without the need to return to work to pay the bills before the right time.

Did you know Every year in Australia more than 600 children are diagnosed with cancer? (Children’s Cancer Institute Australia)

Case Study: Meet Michael and Joanna. They have two young children and Joanna has worked part-time for the past three years, while Michael earns an annual salary of just over $120,000.

Their son Ben was just six when he was diagnosed with Leukaemia. Obviously, the couple was devastated. It was very clearly an emotional time for the family, and Joanna and Michael immediately directed their focus towards making sure that Ben got better.

In order to care for Ben, including regular trips to the hospital, Joanna needed to take time off work. This meant, however, that she was left without an income.

Dealing with this illness was emotionally and physically tough on the whole family, but given that Joanna and Michael had taken out Child Critical Illness insurance the strain was significantly lessened.

The money they received from their insurance helped pay for Ben's medical expenses. It also enabled Joanna and Michael to pay for their daughter’s child care and household help such as a cleaner while they focussed on Liam’s recovery.

How much critical illness insurance do you need?

This is a question that only a financial adviser can answer with detail but most people start their thinking about this important family step by considering the following:

  • How much would you need to continue to pay your day-to-day expenses, including your mortgage, personal loans, credit cards and hire purchase arrangements?
  • What are your fixed ongoing family bills such as children’s school fees?
  • What lifestyle changes would you want to make such as reducing your working hours for a period of time to spend more time with your family

What medical conditions can be covered by a Children's Critical Illness insurance policy?

  • 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 Burns
  • Major Brain Injury
  • Major Organ or Bone Marrow Transplant
  • Malignant Cancer
  • Meningococcal
  • Septicaemia
  • Open Heart Surgery
  • Out of Hospital Cardiac Arrest
  • Paralysis
  • Pneumonectomy
  • Primary Pulmonary Hypertension
  • Stroke

According to the Australian Institute of Health & Welfare, more than half of all hospital admissions for children are caused by just 3 main causes:

  • Accidents
  • Cancers, or
  • Nervous system diseases

If you have children in your life, it's important to stop and consider whether you should add your children to your own Crisis insurance policy so that if it was ever needed, you'd have additional financial options available to draw upon.

Reading recommendation: Please be sure to read the associated article New Medical Second Opinion Service available to Sapience clients


author pic drew browneDrew Browne is a specialty Financial Risk Advisor working with Small Business Owners & their Families, Dual Income Professional Couples, and diverse families. He's an award-winning writer, speaker, financial adviser and business strategy mentor. His business Sapience Financial Group is committed to using business solutions for good in the community. In 2015 he was certified as a B Corp., and in 2017 was recognised in the inaugural Australian National Businesses of Tomorrow Awards. Today he advises Small Business Owners and their families, on how to protect themselves, from their businesses.  He writes for successful Small Business Owners and Industry publications. You can read his Modern Small Business Leadership Blog here. You can connect with him on LinkedIn Any information provided is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance.

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