Whilst most insurers won’t allow you to take out a dedicated insurance policy for your children, many people don’t realise that some will allow you to include critical illness cover as part of your own policy.
Children’s critical illness cover is an addition to your own policy, and it simply means that you will receive a payout should your child be diagnosed with a serious illness.
This payout will help cover costs you need to make to care for them; things such as care as well as cover for any time out of work you need to take in order to look after them.
Cover may also provide a payout for things such as medical expenses, or funeral costs in the unfortunate event of a child’s death. It could also cover for costs of things such as life-saving equipment you need to set up at home.
If you already have a life insurance policy and would like to investigate adding cover for a child, the first place to start would be speaking with your insurer to see what options are available. If available, it would generally be possible to add the cover to your own policy.
When it comes to cost, the amount you pay will be affected by the level of cover you require and if your child has a pre-existing condition, costs are likely to be higher. You may also have the option to purchase a policy that is payable through the child’s age of 65 or 100, but the further you stretch out the payment schedule, the lower the premium will be.
There are some pros and cons to buying life insurance for your child and it’s important that you understand fully what the policy covers (as well as what it doesn’t). Three pros and cons are:
Pros
- It guaranteed insurability for later in life
- It allows you to lock on a low rate
- It provides funds for funeral expenses
Cons
- It’s a long-term commitment
- Coverage limits tend to be low
- Monthly payments could be used on other things
If you’re considering taking out life insurance for your child, drop us a call on 01322 553282 or contact us through our website to chat with one of our advisors and discuss the options available.