Several years ago I wrote an article, “Looking after your children’s health and welfare” which detailed how you could get some insurance cover as an optional extra on your own policies to protect your children. However, there was a lot of confusion as to what could be claimed and at what age different types of policies would be in place. However, Insurers have now listened to feedback from advisers which told them that many parents see the benefit in a product designed to help protect the whole family in the event of a child being diagnosed with a traumatic condition. This has seen a recent release from some insurance providers of a product that pays out a lump sum should your child contract a critical illness.
While you would be right in thinking that the public health system in New Zealand along with ACC would provide an excellent level of cover for your child should they become sick, it would be wrong to think that all expenses could be covered. While the health service will try and speed the child’s treatment through the system to make sure they have the best chance of recovery, any associated costs or alternative treatments will be at your own expense. This is where the new type of cover will prove so valuable. Currently, if your child is ill there is sometimes a small amount of cover available to help with expenses while you’re taking time off work to support your child on their path back to full health. However, with the new stand-alone trauma for children, a sum can be accessed to provide funds for any reason, and will help parents to avoid the stress that may be experienced if time has to be taken away from work while supporting their child’s recovery.
There could be additional expenses to bear in mind throughout the initial treatment and ongoing recovery process, which these new products may be able to help with. Travel and accommodation costs may need to be met, along with childcare for other children, family counselling and additional therapy or tutoring to help the child catch up with school work missed during treatment of their illness.
Any cover for children aged between two and 15 is subject to exclusions for pre-existing conditions, but an evaluation can be carried out by an underwriter at the time of application to determine how the condition came about, how effective subsequent treatment has been and what the long term effects are likely to be before any final decision is made regarding any exclusions based on the child’s previous medical history. Terms and exclusions applied to the policy during childhood can be reviewed once a more comprehensive medical history is in place. Generally this will be after the age of 21, by which stage the policy will have been transferred to a full trauma product. Each client’s family situation and needs will vary, but as with any Insurance it pays to talk with your adviser to find an affordable option that will make sure funds are available to go to the right place at the right time in order to protect what matters most to you.
