• Matt Towe

Child cover and why you need it

When it comes to parenting, we all know the feeling of having to ask our boss for yet another unplanned day off because our child has become sick. More often than not, their illness passes as quickly as it came. But have you ever stopped to think what you would do if your child was diagnosed with a more serious condition, meaning you needed to care for them for longer?

In 2020, insurance provider Aviva paid out a record £5.5 million for children's critical illness claims, with an average payout of almost £21,331. More shockingly, almost half (45%) of their child-related claims were for cancer, particularly blood cancers.

Aviva Claim Report, 2020

Your child becoming seriously ill is unthinkable but as a parent, it's something we shouldn't turn a blind eye to, just because it makes us feel uneasy.

The good news is that some adult critical illness policies have child cover built-in as standard (Aviva, Scottish Widows, L&G, LV) while providers such as AIG, Zurich and Vitality offer the cover as an additional benefit that can be added for as little as £2 per month.

Either way, this is another reason why it's good practice to review your cover at key life moments such as having a baby so that providers can add your children to the policies and make sure the whole family is protected.

But how can a lump tax-free sum help you and your child should they get sick?

Generally speaking, this is a contribution towards the family's finances that you can use however you need. Financial support might include:

  • 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

Ultimately, insurances are in place to give families financial peace of mind should something unexpected happen and no one should ever need to worry about work at a time when family matters most.

CLIC Sargent reports 49% of parents experienced a loss of earnings when their child fell seriously ill. If you have a little one or are expecting, it really is better to be proactive and speak to a broker to review any existing cover you may or may not have in place.

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