21 May Critical Illness Insurance for Children
If you have children, you know the feeling: a headline or donation collection for a child afflicted with cancer or other serious illness can feel like you’re getting punched. It’s only natural to think what would happen if it were me? How would I manage if my child were diagnosed with a serious illness?
No one likes to think about the possibility of a child becoming ill, but it’s important to do so. Your disability insurance would not cover a leave from work, so having the financial resources to focus on your child’s recovery is something to consider.
Critical illness insurance provides a lump-sum, tax-free benefit in the event of a diagnosis of one of the covered conditions. Policies generally offer coverage for up to 37 illnesses, including those specific to childhood such as Type 1 Diabetes, cystic fibrosis or congenital heart disease.
Starting your child’s insurance program early offers many advantages:
- Low cost
- Often contracts include a return-of-premium benefit, which means that if the contract remains in force, you get all or a portion of the premiums back. Some companies offer contracts that return the premiums paid to age 25 and the policy remains in force.
- Compassionate leave – if a parent takes an unpaid leave of absence from full-time employment, the policy pays the parent $1,500 for up to 12 months
- Protects your child’s insurability, because your whole family’s health, including grandparents, affects a child’s ability to purchase insurance coverage
Have we talked about options to get your child started on the right foot? Let’s discuss how critical illness can affordably begin your child’s insurance program and protect you at the same time.