7th June 2023
The benefit of Children’s critical illness
Whilst many think otherwise the benefit of including children’s critical illness within a policy cannot be overstated.
This was brought home to me first-hand recently when my grandson was rushed into hospital after collapsing and losing vision in both eyes. An MRI scan indicated a brain abscess and he was ambulanced to Great Ormond Street Hospital. Within minutes he was operated on and 75ml of infection was drained from his skull. A second aspiration was needed a few days later and he was then diagnosed with bacterial meningitis.
Fortunately he is on the road to recovery but it will be a time-consuming affair. His mother will need to reduce her working hours to be with him and ensure that he receives his daily antibiotics and does not suffer a relapse.
Also fortunate is the fact that she has a life and critical illness plan with integral children’s critical illness protection. Drainage of a brain abscess is one of the conditions included so she will receive a £25,000 payout enabling her to work shorter hours and have whatever time off is necessary.
In recent years most insurers have opted to make children’s critical illness optional like waiver of premium or total and permanent disability. This means that the cost is explicit unlike the days when children’s critical illness was an integral part of each plan.
As a result many applicants will choose to exclude this additional cover in order to save a few pounds - even when they have young children.
Times are tight for many but although It may seem prudent the true value only becomes apparent when tragedy strikes. The protection it affords provides a financial safety net that cannot be decried.
A child in hospital means time off of work, extra petrol, potential hotel bills. The payout helps meet the cost of having unpaid leave from work, of meeting hotel and food bills, of enabling private medical care when necessary and of being able to afford the cost of regular prescriptions.
Now none of this provides for pleasant conversation but advisers have a duty to ensure that clients fully understand the options within plans and to draw their attention to the benefits with the associated peace of mind that this instils.
The table below highlights the amounts that insurers will pay out for 100% and additional payment conditions. This, of course, is the tip of the iceberg and the quality plans will cover children from day one, for a host of congenital conditions, include pregnancy complications and, in the case of AIG, include birth defect cover.
|
|
Main Conditions |
Additional Payment Conditions |
|
AIG Your Life |
Lower of £50,000 or 50% |
Lower of £25,000 or 25% |
|
AIG Key 3 |
Not included |
Not included |
|
Aviva CI Plus |
Lower of £25,000 or 50% |
Lower of £25,000 or 50% |
|
Aviva CI Plus Upgraded |
Fixed £25,000 or £50,000 |
Fixed 25% |
|
Guardian |
Between £10,000 - £100,000 |
Between £2,500 and £25,000 |
|
HSBC Life & CI |
Lower of £25,000 or 50% |
Lower of £25,000 or 25% |
|
HSBC Life & CI Plus |
Lower of £50,000 or 50% |
Lower of £30,000 or 50% |
|
L&G Standard |
Lower of £25,000 or 50% |
Lower of £25,000 or 50% |
|
L&G Child Extra |
Lower of £35,000 or 50% |
Lower of £35,000 or 50% |
|
LV= Enhanced Child |
Lower of £35,000 or 50% |
Lower of £15,000 or 25% |
|
Royal London Standard |
Lower of £30,000 or 50% |
Not included |
|
Royal London Child Enhanced |
Lower of £50,000 or 50% |
Lower of £30,000 or 50% |
|
Scottish Widows Protect |
Lower of £30,000 or 50% |
Lower of £30,000 or 50% |
|
Vitality Child Serious Illness |
Between £10,000 - £100,000 |
15% to 100% |
|
Vitality Child Serious Illness + |
Between £10,000 - £100,000 |
5% to 100% |
|
Zurich core |
Lower of £25,000 or 50% |
Lower of £25,000 or 25% |
|
Zurich Select |
Lower of £25,000 or 50% |
Lower of £25,000 or 25% |
Alan Lakey, CI Expert
You need to be logged in to comment on this article