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What is Children's Benefit Insurance?

Col Lea | Thursday, January 14, 2016

 

One of the most stressful experiences a parent can be faced with is an unexpected injury or illness that affects one of their children. A serious medical event like this raises medical, emotional and financial issues that require consideration. Depending on the seriousness of the illness (eg: cancer diagnosis, paralysis, meningitis) or injury (major head trauma, coma, loss of sight) the road to recovery and the cost of treatment might be substantial. In the event that this misfortune occurs, having an insurance policy in place that provides a children’s benefit will provide much needed funds for treatment and recovery, not to mention financial peace of mind for the parents.

So what is a Children’s Benefit? For the purpose of this article I will use the Children’s Benefit as outlined in the BT Protection Plans PDS, however many insurers also include children’s cover in some form as part of their product offering to clients. The Children’s Benefit offered by BT provides a lump sum payment of up to $200,000 if the insured child dies or suffers a children’s medical event. The policy is only available if the natural parent or legal guardian has an existing or is applying for another BT Personal Protection Plan policy. Entry age is currently from 2 – 14 years of age, with policy expiration at age 16. At age 16 the insured child has the option to apply for a term life policy with living (trauma) cover up to $200,000 without additional medical or financial underwriting.

 

So what is covered? The table below lists the conditions that would trigger a benefit payment should your child suffer from one of the following medical events:

Aplastic anaemia

Benign brain tumour

Brain damage

Cancer (malignant tumours)

Cardiomyopathy

Coma

Encephalitis

Kidney Failure

Loss of hearing

Loss of limbs

Loss of sight

Loss of speech

Major head trauma

Major organ transplant

Meningitis

Meningococcal septicaemia

Paralysis

Severe Burns

Stroke

Terminal illness

 

Medical evidence will be required to support the claim, and exclusions do apply that prevent payment if the event giving rise to the claim is caused by self-injury, suicide or a congenital condition (i.e. a condition present at birth). There is also a three month exclusions from the time the policy is taken out for cancer and stroke.

Summary

While everyone likes to think that these medical events will not happen to their children, life is full of uncertainty and unexpected turns of events, so it makes sense to consider putting in place cover for your children now as none of us can predict the future. Should the worst happen, having a lump sum payment of up to $200,000 will mean that the worry of funding treatment will be mitigated or removed, as well as provide an opportunity to take time off work while your children recover. The cost is relatively inexpensive, and when your child is sick, you want every available resource at your fingertips immediately. If you would like to discuss how a Children’s Benefit through insurance can protect your family please contact Colin Lea at the Carey Group on (07) 4760 5900 or email colin.lea@careygroup.com.au to request an obligation free appointment.

 

Disclaimer: Carey Financial Pty Ltd is an authorised representative of Securitor Financial Group Ltd and provides financial planning services for superannuation, managed investments, personal risk insurance, shares and self-managed superannuation fund investment advice.

This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs.  Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.