Child trauma insurance is highly emotive and there is no easy way to say it other than – what if one day you needed it? You may not be aware that some insurers offer this very specific cover, so this update provides you with some basic information.


Over Christmas and New Year periods in Australia it seems there are a higher than usual number of road accidents resulting in death of people of all ages. In fact, there were 129 road deaths in December 20171. During times like this we often ask ourselves – what would I do if this happened to me? We don’t know how we would react, how we would cope or what type of support we would need, but having appropriate insurance in place and a financial adviser you can rely on to assist you with the claims process can take away some of the burden, should you need to claim on your insurance.


What is a Child Trauma Benefit? 

Child Trauma Benefit is insurance specifically for your children and can come as either an inclusion or an optional extra with your own Trauma insurance policy. Either way, there will be a separate premium payable if you chose to take out this type of cover.

A lump sum payment is made to you, the parent or guardian, if your child were to pass away or suffer a specific medical event that is outlined in your policy. Depending on the insurer, and whether the Child Trauma Benefit is an inclusion or optional extra, the lump sum payment amount can be either a fixed sum or an amount specified by you at the time of application.


What is a medical event?

The medical events covered under a Child Trauma Benefit range in the nature between the different insurers so it is pertinent to ask these questions when you are considering insurance for your child. There are other considerations it is worth exploring with your financial adviser including policy eligibility and cessation.

Under some policies, the insurance is only available to children of a certain age. There may also be cessation period that refers to a time horizon immediately after the upper limit of the specified age eligibility bracket. A cessation period may trigger if the Child Trauma Benefit is part of your trauma policy and your policy lapses. Staying on top of this and being aware of any renewal dates or lapse periods is something your financial adviser can help you with so reviewing your policy every year is a good idea.


Help when you need it most

Thinking about a child passing away, or suffering a serious trauma event, is incomprehensible but it does happen. During this horrible time in your life it is helpful to have a support network you can call on – family, friends, your local community or church group and, yes, your financial adviser. They have experience in processing claims and they can take this burden away from you so that you can focus on yourself and your family.


Let us help you!

Child Trauma Benefits can vary considerably among insurers so it is important to get advice specific to your needs and carefully read the policy documents. We can help you with this. Please CONTACT US for an obligation free meeting!!

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Disclaimer: This editorial and the information within, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. The views expressed in this publication are solely those of the author; they are not reflective or indicative of Licensee’s position, and are not to be attributed to the Licensee. They cannot be reproduced in any form without the express written consent of the author. RI Advice Group Pty Limited ABN 23 001 774 125, AFSL 238429.  1. https://bitre.gov.au/publications/ongoing/road_deaths_australia_monthly_bulletins.aspx