Child Trauma policies provide a lump sum benefit in the event of a child suffering a trauma condition. It allows the parents to take time away from work to either care for the child at home or in hospital which may be some distance from home.
Child trauma policies are often provided as an option under an adult Death, Income Protection or Trauma Contract. There are sum insured guidelines including upper limits of around $100,000 to $200,000 depending on the insurer. The entry age for this option is around 2 – 5, depending on the insurer.
There is, as with the adult version of Trauma insurance, a specified list of child trauma conditions including death. The lists of specified events vary across insurers and all have a range covering injuries and common illnesses. The benefit if not yet paid out will automatically expire at a set adult age, usually 18 or 21. At this point, some contracts will allow the child cover to convert to a Death and Trauma contract without the need to provide medical details.