Celebrating The Hidden Extras – Protecting yourself, and protecting your children

Posted by & filed under Children's Critical Illness, Critical Illness, Protection Insurance.

Last week I was invited to speak to a group of 20+ business people, and to talk about Moving Experience and the products and services that we offer. It would have been easy to launch into a 10 minute ‘heavy sales pitch’, but that could have been boring, obvious, and not consistent with what I’m aiming to achieve in the business. I did explain what we do, as you’d expect, but very swiftly and then I moved on to why we do it.

Among other things, it’s hugely important that my business is, and can be seen (and endorsed) as being (a) transparent (b) jargon free, and (c) that we educate and inform. I believe that clients need to know and understand their options, and they should be (and feel) equipped to make the correct choices for them and for their families. One area that I feel passionate about, and where I believe that there’s a distinct lack of knowledge and understanding, is critical illness cover for children. There is a very real need, which I was reminded of when watching DIY SOS on 21 Oct 2014 

What do you get?

Protection policies can be confusing, and complex. Yesterday afternoon I printed a ‘Key Facts Document’ for a critical illness plan that was over 20 pages, and that’s not the longest. I then printed the 32 page application form!! If we’re honest, I don’t think that either I or the insurance company would realistically expect a high percentage of clients to read those 20+ pages, even though it’s important that you understand the key content.

Let’s flick through to page 7 of the aforementioned ‘Key Facts’, and to the often ‘glossed over’ topic of Children’s Critical Illness Cover. If you arrange a plan with this company (or several of its competitors) then in addition to the critical / serious illness cover that you’re buying for yourself, you will be getting cover for your children too. It’s not a bolt on, and you don’t need to pay an additional premium, it’s just there already and included in the deal.

I sincerely hope that you’ll never need it, but if (during the term of cover) your child is diagnosed with a qualifying condition, or perhaps suffers a life changing accident, then a payment of up to £25,000 could be made. In this plan, if your medical consultant advises that treatment is not available in the UK, but that an effective, curative, or preventative treatment is available overseas, this insurance company will double the benefit payable.

Dig out your documents?

Do you currently have a joint policy, that was possibly taken in order to repay the mortgage in the event of a claim? In many cases it’s possible to double the value of the benefits payable, including the children’s critical illness, whilst paying the same or a nominally increased premium by taking a look at 2 separate single covers. If any life benefits are taken out ‘in trust’, which is very simple to arrange, then it’s likely that the family could receive benefits (in the event of a claim) more quickly too.

Please, take a moment; dig out the file that includes your protection policies:

  • Do you have single or joint cover?
  • Does your policy include Children’s Critical Illness Cover?

Last year Friends Life paid approx. £1.5 million in child claims ¹, Ageas reported that Children’s Critical Illness was the 2nd most common cause of critical illness claims², and Aviva paid benefits to 58 of its customers in 2012³ – These figures show that there is a clear need and value to having cover in place. There are hundreds of families who have been helped, but I’m quite certain that there are many others who won’t / didn’t have any help in times of difficulty, possibly because they didn’t even know they could.

As both an adviser and as a parent, I find the above statistics both surprising and sobering. We all hope that bad things will never happen to us, but ‘just in case’ I do have insurance policies in place (as you’d expect) and that’s something that I find that very comforting.

To find out more about this part of cover and whether or not you need to review your own policy, email or call us on 0117 204 7441.


1 http://www.friendslife.co.uk/doclib/Critical_Illness_Claim_Statistics1.pdf
2 https://www.ageas.co.uk/newsroom/ageas-protect-announces-its-paid-critical-illness-claims-performance
3 http://www.aviva.co.uk/media-centre/story/17126/aviva-pays-nearly-half-a-billion-pounds-in-protect/