What the children's benefit is for
If your child became seriously ill, one or both of you would probably want to stop work to be with them. Hospital stays far from home, travel and parking, and adapting the house can all bite into family money. Children's cover gives you a lump sum to ease that, so you can focus on your child.
Most plans also pay a smaller sum if a child dies, which families often use for funeral costs. This is less common on life-only policies, so check the terms if it matters to you.
You can spend a children's payout on whatever your family needs. Some parents use it to cover lost earnings during months of hospital visits. Others pay for private therapy, an adapted car or simply time together. The insurer pays the money to you as the policyholder, and you decide how to use it.
Who the cover includes
Policies usually cover your natural children, adopted children and stepchildren, from birth or a few weeks after birth. Children born or adopted after you take out the policy are normally included automatically, with no need to tell the insurer.
Each insurer sets its own upper age. Many stop at 18, and some carry on into the early twenties if the child stays in full-time education. Some plans also pay a benefit for certain conditions diagnosed before birth or soon after.
- Natural, adopted and stepchildren
- Children born after the policy starts
- Upper age limit set by each insurer
- Extra conditions that only affect children on some plans
Details that differ between policies
The amount paid, the list of conditions and the age limits all vary. Some insurers pay a percentage of your cover up to a cap. Others pay a fixed sum. A few offer an upgraded children's option for an extra premium, with a higher payout and a longer list of conditions.
Read how the policy treats a condition your child already has. Pre-existing conditions are usually excluded from children's cover, in the same way as for adults.
Some plans add a hospital benefit, paying a daily amount if your child spends a long stretch as an inpatient. Others pay towards accommodation so a parent can stay nearby. These extras rarely feature in the headline quote, so ask about them when you compare policies.
How Hi Tomorrow compares children's cover
When you are choosing critical illness cover, we show you the children's benefit on each plan side by side. You see the payout, the age limit and any extras, so the free cover you get is not an afterthought.
If you hold two policies, say one each, we check whether both would pay on the same claim. Some will, and some will only pay once per child. We help you file a children's claim with the insurer too.
If you are looking at life insurance only, ask whether a critical illness plan would suit your family better. The children's benefit is one reason many parents choose it, and we can show you how the two options compare for your budget.