Advisers most asked questions on Children’s Critical Illness Cover
The average family with young children in the UK has seen their expenses rise by over £1,000 a month since February 2023.
During the same period, Royal London paid out over £25 million in children’s critical illness claims supporting over 160 families.
As these types of insurance contracts become more popular, we’re seeing more advisers reaching out to our protection technical team for support. Here are some of the most asked questions from advisers regarding children’s critical illness cover at Royal London.
Can children’s cover be added to an existing policy?
Children’s critical illness cover isn’t automatically included with an adult critical illness contract, instead there are three options available:
- Not to include children’s cover
- Standard children’s cover
- Enhanced children’s cover
If no children’s cover is selected, it can be added later without any medical underwriting required. If children’s cover is no longer required, it can be removed from the adult’s policy in the future.
Can foster children be covered?
With almost 70,000 children living with foster families across the country, it’s no surprise that one of the most common questions our protection technical team receive relates to whether foster children can be covered by a children’s critical illness policy. At Royal London, our children’s cover provides cover to children as long as they are resident with and financially dependent on the life assured.
How many times can children claim on the child CI element?
There is no limit on the number of children that can claim on children’s cover, how many claims depends on what the nature of the claim is.
There can be a claim for pregnancy complications, followed by a claim for critical illness, additional conditions, Total Permanent Disability (TPD) or Terminal Illness and death of a child.
Can a male life make a claim for pregnancy complications?
If a male life takes out a plan which includes critical illness cover and he selects enhanced children’s cover because he and his wife/partner are planning to start a family, he'll have access to cover for eight pregnancy complications. If his wife/partner becomes pregnant but suffers a complication that meets our definition under pregnancy complications, he can claim even when his wife/partner is not covered under the contract.
Can a child access the same ancillary benefits that the life assured can?
All Royal London protection policies sold through an adviser give policy owners access to a range of physical and mental wellbeing services, even if they never have to make a claim. These services extend to the partner and children of the plan owner. In 2023 over 1000 customers and their families used Helping Hand for recovery. 101 cases that used Helping Hand involved children with the average age of the child just 10 years old.
Can a family income benefit policy include children’s critical illness cover?
Since 2020 sales of Family income benefit policies have fallen across the industry, which is concerning given the versatility and cost effectiveness these types of contracts offer. Whilst the majority of family income benefit contracts are written on a life only basis, but they can often be written on a life or earlier critical illness basis and at we allow for children’s cover to be included within the contract.
If a child claim is being made on a family income benefit policy, the benefit is paid out as a lump sum. The calculation used to determine this lump sum will depend on whether standard or enhanced children’s cover is selected, and the reason for the claim.
Do Royal London allow for the child to turn their child policy into an adult policy?
If enhanced children’s cover is added onto an adult critical illness contract the plan owner can arrange for the child cover to be converted to an adult policy when the child turns 22 or 23 if they’re in full time education.