Learn Why Critical Illness Insurance for Children is Essential

By: Updated: August 11, 2016


A topic people least want to discuss: the possibility of a child becoming seriously ill. Simply put, parents don’t want to consider the possibility that harm could come to them.

Unfortunately, avoiding the topic doesn’t make the issue any less real. Critical illness insurance for children is an essential component of a family’s financial plan.

Few of us want to contemplate the reality of being diagnosed with a serious illness, let alone the possibility of a child becoming seriously ill. Even fewer of us have given any thought to how we'd cope financially.


Why think of an emotionally charged topic when it likely won’t happen? While no parent wants to consider the possibility of their child becoming sick or dying, it happens more frequently than we think. Consider the following: a survey by Health Canada revealed that when it comes to the well-being of Canadian children, when compared to the other 29 economically-developed nations, Canada ranked:

  • 21st in child well-being, including mental health,
  • 22nd for preventable childhood illness and death, and
  • 27th in childhood obesity.

The Toronto Hospital for Sick Kids alone receives over 300,000 visits every year, with many suffering from a form of cancer.


Consider the Smith Family. 

The Smith family consists of Mom (Mary), Dad (Joe) and children Sarah (age 1) and Jack (age 3). Since Joe and Mary are both breadwinners, they each purchased a critical insurance policy for themselves. So if either of them becomes seriously ill, the family will receive insurance proceeds to maintain their lifestyle.

But what if the unspeakable happens and one of their children becomes seriously ill? Chances are Joe and Mary would both be so upset and consumed by the situation that they would be unable to focus on little else. Work would become difficult, if not impossible. A leave from work may be an option, but ultimately, the family’s income would be jeopardized.

Would it help if they could receive benefits such that they could focus on caring for the child while away from work?

That’s what critical illness insurance for a child can do. Although a child is not a breadwinner, the emotional and physical stress of a child's serious illness affects the breadwinner’s ability to do just that. When you consider the increasing number of single-parent families, this becomes even more important.


Critical illness insurance for each member of the family, including the children, will eliminate the financial hardship experienced in the event of a child's serious illness.

The benefits of a stand-alone critical illness insurance plan for children are as follows:

  • It allows parents to insure children when they’re young and healthy, making it easy and affordable.
  • Lock in the rates today. Lifestyle and career choices later in life may make them uninsurable or subject to higher, rated premiums.
  • Select a limited-pay plan so, as young adults, they benefit from a paid-up policy that provides insurance protection at a time when their expenses are high and their debt is growing.
  • Protect the financial security of the whole family since a child with a serious illness can also trigger the loss of income for one or both parents.
  • If the child succumbs to the serious illness, a cricital illness insurance policy can make funds available to establish a scholarship fund or make a donation in the child’s name as a lasting memorial to their life.

Interested in learning more about Critical Illness Insurance and how it can protect you and your family? Download our free ebook: The Beginner's Guide to Critical Illness Insurance.

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