One type of life insurance is child insurance .
The essence of child insurance is not to protect the child from adverse events, since not one insurance product will be able to do this, but to compensate for the financial costs incurred in connection with the restoration of the child’s health after an illness or accident or disability. Insurers for child insurance can be not only parents, but also close relatives and guardians. There are no restrictions on the number of children insured by the policyholder.
There are also no restrictions on the number of insurance contracts per insured. Children are accepted for insurance from the moment of birth (newborns) and up to 17 years of age, as of the date of conclusion of the child insurance contract. The following are not accepted for insurance:
1. Children with mental disorders, as well as socially dangerous;
2. Children with HIV, cancer, chronic cardiovascular disease;
3. Children with disabilities.
Insured events are:
1. Loss of health from an accident
3. The death of the insured;
The insurance amount depends on the term and the amount for which you are insuring children. Insurance premium in contracts up to a year, usually paid in one installment. At the conclusion of the contract, children’s insurance for a period of more than a year, installment payment of an insurance premium is possible.
Child accident insurance
The accident insurance contract for children is designed to compensate for your expenses in the event that your child is injured as a result of an accident. At your discretion, insurance companies offer several insurance programs that apply not only to the whole year, but you can choose insurance for a certain period, for example, while the child is on vacation, at school or on vacation in a health camp. The accident insurance contract determines what is an accident and what is not. Insurance indemnity is paid:
- with bites of animals, snakes, insects;
- bodily injuries: sprain, dislocation, fracture, frostbite, burn, etc.
Insurance indemnity is not paid:
- with a health disorder from infectious diseases.
By concluding a child insurance contract, you can choose from what risks you want to insure it, insurance companies provide a choice of insurance products that already contain a strictly defined range of risks and if it suits you, you can purchase it. But if you have not found the risks you want to insure your child with in standard products, then you can purchase extended insurance by paying an additional amount in addition to the standard program. When calculating the cost of the insurance policy, the period for which the insurance contract is concluded, the risks against which you are insured and the insurance amount for which you conclude the contract, are taken into account. When you conclude a child accident insurance contract, you set the insurance amount yourself and if several accidents occurred during the insurance period, the insurance company pays the insurance indemnity as a percentage of the principal amount. If your child is hospitalized, the insurance company will pay for each day of his stay in the hospital. The maximum insured amount is paid if:
- the child has become disabled;
- death of a child.
But it is worth remembering one very significant fact that you must pay attention to when concluding an insurance contract. This is a franchise. If a deductible is included in the insurance contract, then you will not be paid for treatment for an amount lower than the deductible specified in the contract.
Voluntary health insurance for children (VHI)
If you insure your child under a voluntary health insurance program, you can be sure that your child will receive first-class, highly qualified assistance at all paid clinics and hospitals. The services that can be included in the policy are varied and you outline them yourself when concluding the contract. You can buy a policy only for treatment from a pediatrician or dental care, or both, that is, any number of services, since you pay for each service separately and the insurance company is obliged to organize it for you. You can also insure your child under the comprehensive VHI program, it will certainly cost less than paying for each service separately and as a result you will receive a pediatrician’s appointment and dental care and emergency care, and much more. Also, this type of treatment includes the child’s treatment in a hospital. When concluding a contract for voluntary medical insurance of children, it is worth considering that the main criterion is the health of the child. Therefore, most likely you will be asked to undergo a diagnostic examination or, in some cases, fill out a questionnaire. In addition, the age of the child also affects the cost of the policy, for example, a policy for a newborn will cost more than a policy for a child 5-7 years old, since a newborn needs a visit to the pediatrician. Many insurance companies design their products according to the age of children. For example, from 0-3 years old, from 3 to 7 years old, from 7 to 14 years old and over 14 years old.
Child Savings Insurance Policy
Cumulative child insurance policy is usually bought by parents who would like to accumulate a certain amount by the time they reach adulthood or the child’s wedding, especially since cumulative life insurance is also an investment tool and, in addition to contributions by the time the program ends, you still receive interest on your money and this is quite impressive amount. In addition, the cumulative insurance policy also has a protective function, i.e. payment of the sum insured will occur not only when the insured reaches the age specified in the contract, but also if the child suffered from an accident or in the event of the death of the insured. Some insurance companies offer savings insurance policies for children, according to which if the policyholder dies or becomes disabled and cannot pay more, the contract is not canceled, but continues until its expiration date and upon reaching this period, the insured is paid the entire insurance amount which was concluded an insurance contract. At the end of the term of the accumulative child insurance agreement, i.e. the life of the insured until the age of 18 or marriage, the insurance payment may be received by the insured or the policyholder. But it is worth considering that it is paid to the policyholder only on the basis of a written application. The same scheme applies to the premature death of the insured person.