Covering more than one child

There are now childrens insurance policies in Australia that offer a lump sum benefit payment for each individual child at claim time (as opposed to a lump sum covering all of your children).

This means that should any of your other children suffer a serious accident or illness later down the track, another lump sum payment may be possible.

Cover with one lump sum for all children

The majority of child cover options available to Australians offer a lump sum benefit payment which covers all children. This 'blanket coverage' potentially means that once a claim is made and a benefit is paid, if another child should fall seriously ill later down the track you will not be able to make another claim.

Cover with a lump sum for each child

Select life insurance companies in Australia now offer cover for each individual child, instead of the standard blanket coverage for all of your children.

This option allows parents to protect each child individually, usually for up to $200,000 each. It often provides cover for a number of traumatic events such as blindness, cardiomyopathy, paraplegia, malignant cancer and severe burns as well as death and terminal illness.

Depending on the insurer you choose to go with, this type of childrens insurance can be priced as low as $10.50 per $10,000 of cover per annum.

Whether childrens insurance is premium-free or not, the benefits far outweigh the costs. Most life insurance companies will insure children who are 2 years old and over until the age of 21. Most will then also give you the option to revert to full adult coverage after this age.

Discuss your child cover options

Whether you choose to have blanket child cover or individual child cover, the benefits are clear. Protecting your life and that of your child are both just as important as each other.

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June 2011