The ‘forgotten’ insurance for your children that could save you thousands

Between sleepless nights and stressful calls to the doctor, childhood illness can take a profound emotional toll on families. Unfortunately, the steps towards recovery – the cost of care, loss of income, and the need for one parent to stop working – can also put a significant strain on a family's finances.

Fortunately, there are ways to reduce these impacts so families can focus on their child’s recovery without the added stress of financial hardship.

The hidden costs of childhood illness

In its latest The Cost of Care report, insurer Zurich examined the full financial cost of caring for loved ones with serious injury or illness, including the impact that childhood health problems can have on their families.

The report examined a range of different medical challenges faced by Australian children, including childhood cancer – noting that at least two Australian children are diagnosed with cancer daily.

A cancer diagnosis can affect a family’s finances in several ways, most directly through the cost of treatments. Even with Australia’s world-class healthcare system, some families will find themselves paying as much as $30,000 out-of-pocket for paediatric oncology services.¹

But there are many indirect expenses too. Children may not be able to attend school and instead require full time care, meaning someone in the family may need to take time out of paid work to care for them.

For families that live away from major hospitals, there may be additional travel and accommodation fees that need to be covered. These extra expenses can affect most parts of a family’s lifestyle.

Many insurers offer child cover policies to help pay for these unexpected costs – although you’ll need to speak with a financial adviser to take out a policy.

Josh’s leukemia battle

Many Australians have taken steps to protect themselves and their families from the likelihood they’ll fall ill by taking out income protection policies. Fewer Australians, however, have insured themselves against the likelihood of their child falling ill.

Take for example Josh, a 4-year-old boy from Muswellbrook who was diagnosed with leukemia. His parents, John and Leesa, had to take time off work to care for him, which compounded the medical bills and travel costs associated with treatment in Sydney.

After using up all their paid leave, John and Leesa were reliant on their health fund and savings to tide them over until Josh entered remission. Although everything ultimately worked out for the family, if they’d taken out a child cover policy they could have received up to $500,000 to help manage their finances during their son’s illness.^#

Although health insurance plays a crucial role in managing these challenges, families need to start thinking about the broader, hidden costs they may face if something happens to their kids.

Protecting yourself is child’s play

Child cover is an easy way to protect yourself from the unexpected costs of care. As this type of cover can be complex and bespoke, you’ll need to speak with a financial adviser to assess your needs and set up a policy.

 

# This case study is for educational purposes only.
¹ Zurich, The Cost of Care Volume 2, p. 145