Children and Critical Illness

I have a friend who works with a lady whose daughter has cancer – she is only 17 and may lose her leg. Her friends and family are planning fund raisers to help her cope with all the bills that are not covered by the medical system. Being a single working mom – she needs all the help she can get.

Critical illness products can be characterized as relative “newcomers” to the range of insurance products that are available in the Canadian marketplace. In fact, prior to 1983, critical illness insurance was not marketed anywhere in the world. The demand for critical illness products has grown substantially since its initial advent into the marketplace. One company has introduced a child stand alone policy in May 2008.

It is a stand alone policy providing coverage for 24 insured conditions, 5 of which are childhood related illnesses:

• Cerebral Palsy

• Congenital Heart Disease

• Cystic Fibrosis

• Muscular Dystrophy

• Type 1 Diabetes Mellitus

With advances in medical science improving the chances of survival after the diagnosis of a serious illness, there is a heightened need for insurance benefits. Children’s policies are designed to provide families with the financial resources that will support the recovery and care of a child after the onset of a critical illness insured condition.

The critical illness benefit is payable only once. It is a lump-sum benefit, payable to the owner of the policy, usually 30 days after the insured child’s diagnosis of one of the critical illness insured conditions (some exceptions apply).

Children’s critical illness insurance must be owned by an adult with an insurable interest in the child. For example; parents, grandparents and legal guardians qualify as owners.

The product is guaranteed with level premiums to age 25.  Available from 60 days old to age 17.

The level premium for $50,000 coverage is $14.00 to $15.00 month (depending on age)

You may not want to even think about the possibility of your child becoming critically ill, but what if it does happen? Would you want financial resources to:

• take time off work and be with your child?

• choose the care available?

• focus on your child’s recovery and not on other financial concerns?

Shari Molchan