Child Trauma Insurance – Half of families surveyed five years after a child cancer diagnosis report household income has failed to return to pre-illness levels
The Redkite Charity helps Australian families to navigate the challenges of childhood cancer. A very worthy cause. A report from Redkite called “The Hidden Financial Crisis” discusses “The Financial Toxicity of Childhood Cancer in Australia”. The report contains alarming messages such as “Half of families surveyed five years after a child cancer diagnosis report household income has failed to return to pre-illness levels.”
Experien Insurance Services helps thousands of Australians to arrange life and disability insurance cover with many insurers and we act as a Broker in that regard. Many of these clients hold what is called Trauma Insurance. This is a type of disability insurance product that can pay a lump sum if the Insured person is diagnosed with a medical condition that satisfies the definition (severity) of that specific event as specified in the insurance company’s Product Disclosure Statement. It is generally not dependent on whether you return to work or whether you work at all. It is paid as a lump sum. Child Trauma Insurance is also offered by life insurers and is usually available as an optional extra cover to a parent’s Trauma Insurance policy.
Understanding Child Trauma Insurance
Child trauma insurance is a type of insurance cover that provides a lump-sum payment if a child is diagnosed with a serious illness or suffers a major injury covered by the policy wording. It is designed to help families manage the financial impact of unexpected medical events during a child’s recovery like that shown in the Redkite research.
Covered conditions often include illnesses such as cancer, severe burns, major head injuries, meningitis, and certain heart conditions. The payout can be used for a wide range of expenses, including medical treatment, rehabilitation, travel costs, home modifications, or to replace income if a parent needs to take time off work to care for their child. The terms and conditions offered by each insurer differs, such as maximum coverage amounts and ages. Also, some insurers may only offer cover provided a parent also has cover.
One of the key benefits of child trauma insurance is financial flexibility. Unlike some health insurance policies that only cover specific medical expenses, trauma insurance typically pays a cash benefit directly to the policyholder. This allows families to focus on their child’s recovery without the added stress of financial pressure.
When considering child trauma insurance, parents should carefully review the policy’s covered conditions, exclusions, waiting periods, and benefit amounts. Comparing different insurers can help ensure the policy meets the family’s needs and budget.
While no parent wants to imagine a child facing a serious illness or injury, child trauma insurance can provide valuable financial support during some of life’s most challenging circumstances, helping families concentrate on what matters most: their child’s health and wellbeing.
This is general information and limited in its scope. If you are considering buying or replacing and a Life Insurance policy then contact us to arrange a review for you. We can consider your individual circumstances, goals and needs and recommend a suitable insurer, product and structure to use. We work with several insurers and have extensive experience in helping to arrange claims.
At the time of writing, Life insurance and Financial Advice services are provided by Experien Insurance Services Pty Ltd (EIS) ABN 99 128 678 937 and Experien Financial Services Pty Ltd (EFS) ABN 32 631 346 757. EIS and EFS are a Corporate Authorised Representative (No. 320626 and No. 1274354) Count Financial Limited ABN 19 001 974 625, AFSL 227232. See our website for our Financial Services Guide and latest AFSL arrangements. Always read the Product Disclosure Statement issued by an Insurer before considering insurance.
