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Child Life Insurance

Compare life insurance offers for your child from a range of providers through Savvy today.

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, updated on July 19th, 2023       

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Life Insurance

We’ve partnered with Compare Club to bring you a range of life insurance policies to help you compare them side by side.

Raising children can be incredibly rewarding, but it can also be costly if your child suffers a critical illness or serious injury and needs some expensive health treatment. Child life insurance may be able to help you cover some of those out-of-pocket costs. You can compare deals from a panel of some of Australia’s top insurers with Savvy.

By comparing with us, you can get an immediate price estimate on a range of policies to help you compare all their most important factors, such as benefit limits, inclusions and exclusions and more. Get an obligation-free quote through Savvy today.

What is child life insurance and how does it work?

Child life insurance can be sold as an optional extra to a standard life insurance policy, often known as child cover. This type of rider policy is designed to help reduce financial stress on families by providing them with a lump sum payment in the event of their covered child's death, terminal illness diagnosis or trauma such as a critical illness or injury (subject to the policy’s terms and conditions).

Life insurance policies for children are designed very similarly to those for adults. Essentially, the parents of a child would pay a monthly or annual premium. Any payout for life cover is made upon your child's terminal illness diagnosis or death, provided it satisfies their eligibility criteria, and you can use the money to pay for anything from rehabilitation, funeral or extensive medical expenses.

The number of children you’re able to insure and the maximum benefit limit both individually and among your children will vary depending on who you purchase your policy with. However, the maximum coverage you can take out for your child is often much lower than for an adult, with amounts ranging from as little as $10,000 up to $200,000 (though some insurers may offer more financial coverage).

Age limits on these policies range from 18 to 21, with most policies ending once your child reaches your provider’s maximum age of eligibility. Many insurers will have the option to convert the policy into one for an adult once they pass this age limit.

What does child life insurance cover?

Life is unpredictable, and sometimes sickness or injury may touch your family. Your life insurance provider may pay out a pre-agreed benefit amount for a range of life events (subject to eligibility, terms and conditions), such as:

  • Brain injury: if your child suffers a brain injury and requires treatment in intensive care, your insurance company may provide financial cover.
  • Burns: depending on the severity and the specific treatment your child needs, some insurance companies may offer cover if your child suffers burns to their body.
  • Hearing loss: thousands of Australian children may suffer permanent or temporary hearing loss. If your child is one of those, you may be eligible to claim expenses relating to the treatment of hearing conditions.
  • Organ transplant: if your child requires a new kidney or another vital organ to stay alive, your policy may be able to provide you with benefits to help cover the costs.
  • Paralysis: your insurance company may provide a payout if your child becomes partially or fully paralysed. This also includes if your child loses the use of one or more of their limbs.
  • Vision loss: insurance companies may pay compensation if your child is injured and sustains a partial or complete loss of sight.

How do I compare child life insurance policies?

Comparing offers with Savvy allows you to weigh up a whole range of factors to help you determine which protection is the most suitable for you and your little ones from our panel of leading insurers.

When you’re comparing with us, some of the factors you’ll need to take into consideration include:

  • Cost of additional coverage: a life insurance policy for your child comes on top of the cost of your own life and health insurance. However, the cost shouldn’t be the sole deciding factor, as you should avoid sacrificing coverage where you might need it wherever possible.
  • Inclusions and exclusions: just like your own life insurance, children’s policies come with various inclusions and exclusions. This is why it’s worth comparing and going over the fine print in your chosen insurer’s PDS so you can be clear on what is and isn’t included under your policy’s child cover.
  • Level of coverage: most insurers offer different levels of cover for a child. As mentioned, you may be able to access between $10,000 and $200,000 worth of coverage. However, there's no point in paying for cover you don’t need, which is why it pays to work out exactly what your needs are before you buy life insurance.
  • Age limits: the expiry age of child cover may vary from provider to provider, so it’s a good idea to do some side-by-side comparisons to find out which gives you the most suitable period of coverage. While most policies have an age limit of 18, some may set it at 21 or older in some cases.
  • Health conditions: some life insurers automatically cover pre-existing conditions, such as types of diabetes and asthma. If your child has a long-term illness, it can pay to compare to ensure you aren’t forking out more than you need for cover.

Types of life insurance

Why compare life insurance through Savvy?

Common questions about child life insurance

Can I purchase child life insurance through my super fund?

Most super funds will only allow you to purchase a policy for yourself. However, they may give you the option of family life insurance which allows you to roll your children into your existing policy. While a family life insurance policy can streamline your premium payments and be cheaper than taking out individual policies, certain providers have waiting periods of up to six months on their products. It’s also important to ensure you receive the coverage you need under this type of policy, so comparing is crucial.

How do I make a claim on my child's life insurance?

Making a claim on your child’s life insurance policy is usually no different to the way you or your family would claim under your own policy. It usually involves completing a claims form and providing documents such as medical reports, receipts for expenses or a death certificate. Once you’ve submitted your claim, it can take anywhere from a few days to a few weeks for a claim to be processed.

Do I have the option to take out a term or whole life policy for my child?

No – whole life policies haven’t been available in Australia for many years. This means your child's life insurance policy will be valid until they reach the cut-off age set in place under the life insurance policy.

Can I get coverage for more than one child?

Yes – many life insurance companies allow multiple children to be covered under one policy, including some who may let you add up to ten children. In most cases, your insurer will provide the same cover for each child insured under the policy.

Should I opt for the cheapest child life insurance policy?

The cost of a policy or added coverage shouldn’t be the only factor you consider when comparing options, as the cheapest life insurance coverage for your child may not always be the most suited to their needs or those of your family. It’s crucial to strike a balance between cost and coverage when choosing any kind of life insurance. 

Can I make my child the beneficiary of my life insurance policy?

Yes – you can name a child of any age as the beneficiary of your life insurance. In most cases, they won’t be able to access the funds until they turn 18. If you die before your child turns 18, the payout funds are often left in the hands of a legal guardian or trustee until the child is old enough to receive the money.

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Disclaimer:

Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.

Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.

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