No parent wants to think about the possibility of their child becoming seriously ill or injured. It’s one of those things that feels almost too hard to consider. But having Child Cover in place can make a difficult time a little easier, by giving you financial flexibility to focus on your child’s care, not just the costs.
What is Child Cover?
Child Cover is an optional add-on to a life insurance policy. It pays a lump sum if a child experiences certain serious illnesses or major injuries, or in some cases, if the worst happens and a child passes away. The cover is not designed to replace income – instead, it provides funds that can be used to ease financial pressures during a family health crisis.
How can it help?
The benefit is usually between $10,000 and $200,000. Families often use it to:
- Take time off work to be with their child during treatment or recovery
- Cover medical or specialist costs that aren’t fully met by Medicare or private health insurance
- Pay for travel and accommodation if treatment is only available in another city
- Arrange additional childcare or household support for siblings
- Access counselling, therapies, or private treatment that may help recovery
What does it cover?
Cover varies between insurers, but typically includes conditions such as certain cancers, neurological disorders, severe burns, major injuries, or the need for significant surgery. Each policy defines these conditions differently, so it’s important to check the Product Disclosure Statement (PDS) carefully.
Things you might also consider
When thinking about Child Cover, it helps to weigh up:
- Eligibility: Cover is usually available for children from around age 2, lasting until late teens or early adulthood
- Multiple children: Many policies allow more than one child to be covered under the same policy
- Conversion options: Some insurers let the cover be converted into an adult policy when your child grows up – even if they’ve developed health issues along the way
- Level of cover: Consider what amount would give your family breathing space. Enough to step away from work for a period? To cover medical gaps or specialist treatment? To ease short-term debts while life is on hold?
Did you know?
In Australia, thousands of children are hospitalised each year for serious illness or injury. While most recover well, the treatment and support needed can place real financial strain on families. Child Cover helps ease some of that pressure by providing funds for care and recovery support.
