If you’re a parent, the last thing you’ll want to think about is your child being critically ill in the future. But if the worst did happen there may be a possibility that you’d need financial support, which is exactly what children’s critical illness insurance can provide.
Critical illness cover for children is not a standalone product, it is added to the parent or guardian’s life and critical illness insurance policy. Some insurers automatically include children’s cover and others provide it as an additional option. Many insurers also offer enhanced cover. Always check the conditions and whether the cover means an additional cost to your monthly premium.
Critical Illness and your children
Critical Illness Cover pays out a lump sum if you become critically ill with one of the serious illnesses the policy covers. Children’s critical illness cover is an add-on to normal critical illness policies. In a typical policy, children will be covered for the same core illnesses and conditions as adults, including things like cancer, organ failure, loss of limbs, and loss of hearing or sight. Some policies may also include some child-specific illnesses. Your child’s illness or condition will always need to meet the insurer’s definition.
How many children can be covered and at what age?
All of your children will be covered (including children you already have and children you go on to have). You can only use this benefit once for each child, but after a successful claim for one child, the cover will still continue for your other children, provided you continue paying premiums. The age varies between insurers but generally children are covered from birth to 21 years old and often to 23 years old if they are in full‐time education.
What’s the payout amount?
Since children’s cover is included as an additional benefit, it will only pay out a proportion of your cover amount upon a successful claim. This is usually 50% or £25,000, whichever is the lower amount, although the amount can vary between insurers and depend on the level of children’s cover you choose. So, if you had £75,000 cover, you’d receive £25,000; and if you had £40,000 cover, you’d receive £20,000.
To make a children’s critical illness claim, your child’s illness or condition will always need to meet the insurer’s definition, stated in your policy. The definition usually includes a required severity level or symptoms.
Additional benefits to the policy
The good thing is, Children’s Critical Illness may also include additional benefits following a diagnosis of a condition covered by the plan. These vary between insurers, but they may include payouts to cover any accommodation and childcare costs you incur. If the worst happens and a child passes away within the policy term, most insurers have a separate benefit where they will pay out a sum of money, which could be used for funeral costs. This can range from £5,000 to £10,000.
Benefits may include:
- Child Accident Hospitalisation Benefit
- Child Funeral Benefit
- Childcare Benefit
- Family Accommodation Benefit
*Below is a brief overview of some of the features of children’s critical illness cover:
| Company | Optional | Age Range | Amount Paid (upon successful claim) | Child specific conditions | Other Benefits | Death Benefit | |
| AIG (cover options available) | Yes | Birth to 22 years | £50,000 or £25,000 (Depending on the cover you choose) | 11 | Pregnancy Complications, Birth Defects | £10,000 from 24 weeks gestation | Visit our AIG Provider Page |
| Aviva Upgraded Cover (Core option available) | Yes | Birth to 22 years | Up to £25,000 or 50% of your cover amount (whichever is lowest) | 9 | £50k if diagnosed with 1 of 12 conditions | £5k from 24 weeks gestation | Visit our Aviva Provider Page |
| Legal and General (Options available) | Yes | 30 Days to 22 years | Up to £25,000 or 50% of your cover amount (whichever is lowest) | n/a | £5,000 | Visit our Legal and General Provider Page | |
| Royal London Standard (Enhanced available) | Yes | Birth to 22 years (23 for those in full time education) | Up to £30,000 or 50% of your cover amount (whichever is lowest) | n/a | £5,000 | Visit our Royal London Provider Page | |
| Guardian | Yes | Birth to 23 years | £10,000 to £1000,000 | 6 | £10,000 | Visit our Guardian Provider Page | |
| Scottish Widows | No | 30 Days to 22 years | Up to £30,000 or 50% of your cover amount (whichever is lowest) | 5 | £10,000 | Visit our Scottish Widows Provider Page |
*Always read the small print on any policy and ensure you check with your provider or adviser. This is a guideline and certain terms may apply.
Why you might need children’s benefit
There are various reason you might want to include children critical illness cover on your policy. The most important, knowing that on a successful claim, you’d get a tax‐free lump sum to help you through a difficult time.
The lump sum may also help with:
- Travel expenses to get treatment in hospital
- Adapting your home with equipment to aid recovery
- Childcare costs
- Helping make up for any lost income, if you have to stop working
- Taking your child and family on days out while they recover
It’s a contribution towards your family’s finances that you can use however you need.
The insurer that is right for you will depend on your wishes and circumstances as the terms and conditions vary. It’s important to familiarise yourself with the list of children’s illnesses that are covered in the policy and the definitions set by the insurer as this may be different from policy to policy.
For further advice on Critical Illness and Children’s Critical Illness Cover please feel free to contact us. One of our advisers will discuss your options with no obligations.