How children’s sickness cover could support you if your child is ill

I don’t know about you, but as we head towards summer and the warmer weather the media has been predicting, I’m looking forward to time in the garden with my family.

Whether young or old, you’ll probably know only too well how much pleasure being with loved ones brings. That said, there is another reason I’m so pleased to be enjoying the lighter, warmer evenings.

It’s when a national awareness week is held, and it’s on an issue that’s very close to my heart: Cystic Fibrosis (CF).

The reason it’s so dear to me is that my daughter, Olive, was diagnosed with the disease in 2020, at the age of two-and-a-half weeks. The condition causes persistent lung infections and can limit breathing ability over time, which is why the Cystic Fibrosis Trust’s CF Week is something I’m always keen to support.

The trust’s awareness week, which is held mid-June, raised understanding of the condition by telling the stories of day-to-day life with the condition and included a Wear Yellow Day on the Friday as part of a fundraising initiative.

Caring for a child with a long-term illness not only puts pressure on your time but can also result in lost time at work and additional cost if you have private medical care. That’s why taking cover for your children’s health can be so important, as it could fund medical cost, your time while you care for them, and any lost earnings.

One thing you may not know though is that typically insurance providers offer free children’s cover if you protect yourself against loss of income or death.

Read on to discover the different types of protection policies you could put in place for your children, and why protecting their life and health provides such peace of mind.

There are different types of life cover for your children

Thinking about your own mortality is bad enough but having to consider your children’s death is so much harder. Sadly though, children do pass away, and when this happens having life cover could help relieve financial pressures on you at a desperately difficult time.

There are two different types of cover you could take: a term policy or a whole of life plan.

The former is where you have the cover for a set period, for example up until your child reaches a certain age. The latter covers your child for the entirety of their life. One advantage of a term policy is that it may include a savings aspect, providing your child with a lump sum that they could use later in life, perhaps to buy their first home.

Cover can be taken on natural and adopted children.

You may instead decide to have critical illness cover (CIC)

CIC pays you a lump sum to support your family financially if your child is diagnosed with a condition covered by the plan.

The children’s cover is usually included as part of your own CIC protection, paying a percentage of the amount you are insured for, such as 25%. This means that if you are covered for £100,000, you could receive up to £25,000 if your child is diagnosed with an illness covered by the plan.

Not only is children’s CIC included as part of your own cover, but it’s usually included at no additional cost. It also means your children will be covered for the main two illnesses of heart disease and cancer, as well as other conditions such as multiple sclerosis, blindness and some types of meningitis.

This will depend on your individual cover, so always ensure you check and speak to a financial planner.

Having life cover or CIC could mean you don’t need to worry about money at a distressing time

Children’s life cover typically pays you a lump sum if your child dies or is diagnosed with a terminal illness, which could help with the cost of a funeral or replace lost income while you grieve or care for your terminally ill child.

The money you claim against a CIC could help pay for specialist equipment, pay for private medical care, or again, replace your income while you care for your child. In Olive’s case, for example, it could help fund something as simple as a trampoline, as this is brilliant at helping her boost her lung capacity and breathing.

As a self-employed working mum, I’m able to arrange my career around my desire to be there for Olive, which is why I work two days a week. If I needed to take longer to care for her, I can make provisions to ensure my clients continue to be looked after while I do this.

That said, if you are employed you may not have the same level of flexibility. Remember that while your employer may allow you time to grieve or to look after your children, they have no legal obligation to pay you while you do.

This means that the money provided from your child cover could allow you to take as long as you need to, instead of having to rush back to work due to financial pressures.

If your child has an emergency, CIC could help with the cost of being there for them

If your child is involved in an accident and admitted to hospital immediately afterwards, the cover could provide a lump sum. This could be used to pay for travel costs to the hospital, lost income while you deal with the situation, or private medical treatment.

Your CIC policy may also include the ability to claim money for accommodation if your child is in hospital for extended periods. The length of time will vary from provider to provider.

Get in touch

As cover comes with different stipulations, depending on the provider and the type of plan you decide on, I can help you understand which offers the best protection for your children, and any conditions attached to a protection product.

I can also confirm whether there are any tax implications that need to be considered.

If you would like to discuss child cover for your family, please email me on a.douglass@grosvenorconsultancy.co.uk or call my office on 01793 766 123. Alternatively call my mobile on 07525 177 046.

While I offer high standards of service and will work with you to ensure any plan is right for you, I’m also a busy mum, so work Mondays and Tuesdays only.

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