Child Trauma Insurance

Does my trauma insurance policy also cover my children?

  • Child trauma cover is often included with a trauma insurance policy. It pays out a lump sum if your child is diagnosed with a severe injury or illness specified in the policy. This can help you afford better medical treatment and allow you to take time off work to be there for your child. This type of policy can be purchased as an addition to your own life insurance cover, and is available for parents, grandparents or anyone else who is a child’s legal guardian.

What does child trauma insurance cover?

The comprehensiveness of cover and the benefits available vary depending on the policy and where you got it. Some standard inclusions are:

  • Cancers and tumours

  • Failure or disease of specified organs

  • Specified disabilities including loss of speech, sight or limbs, paralysis, deafness or cognitive loss

  • Severe burns

  • Diabetes, meningitis, encephalitis, medically acquired HIV and other serious diseases

  • Brain damage or traumatic head injury

  • Stroke, specified cardiac events, anemia and other specified cardiac or blood conditions

  • Other injury, illness or medical misadventure specified in the policy. The exact conditions covered will vary between insurers and policies

Case Study

Roger and Jessica were excited new parents wanting the right level of cover for Tom, their new baby. They chose to get their home, contents, car and life insurance all from the same insurer which included free child cover. It was a slightly more expensive option then their cover before the baby.

Years passed without incident, but on the day of his thirteenth birthday Tom was hit by a car while riding a new bike. Tom would need numerous surgeries, ongoing medical care and extensive physical therapy. Doctors advised Roger and Jessica that only time would tell whether a full recovery was even possible.

Within two weeks of the claim being made, a lump sum of $75,000 was paid out for Tom’s accident. They used this money to move Tom out of their local public hospital and into an advanced private facility, while Jessica used the accommodation cover of the policy to take time off work and stay close to Tom’s hospital. As Tom’s recovery proceeded apace, Roger used some of the trauma funds to pay off credit card debt, reasoning that it was an important expense to have out of the way if Tom took a turn for the worse. More than a decade afterwards, Roger and Jessica looked back and realised that child trauma insurance was one of the best decisions they’d ever made.

  • It covered treatments, rehabilitation and physical therapy for Tom that they otherwise would not have been able to afford.

  • It paid out a lump sum to be spent as needed. After all the medical costs, Roger was still able to pay back credit card debt.

  • The accommodation feature of the policy meant Jessica was able to take time off work and stay with Tom without those costs coming out of the $75,000 lump sum. Staying near Tom was a no-brainer rather than a hard choice.

  • The claims made for Tom’s accident did not count towards the limits of Roger and Jessica’s life insurance. They opted to pay more for a separate child trauma insurance policy rather than simply using the child cover option in the policy itself, and specifically checked the conditions of the policy beforehand to make sure of this.

[Post is originally from here.]

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