Introducing pregnancy and early childhood cover
Certain medical conditions are child specific, often diagnosed in pregnancy, at birth or during early childhood.
Typically, the protection needs of those expecting a baby or raising a young family are different to those with older children. Zurich’s critical illness proposition has an element of optional children’s cover that specifically addresses this need in the market.
Pregnancy and Early Childhood Cover provides a valuable financial safety net for young families. Covering a range of congenital and early childhood conditions, it is likely to be of interest to those planning to start or expand their family.
Suffering from complications of pregnancy, including a still birth, or having a baby who is diagnosed with a condition at birth or during early childhood can take a huge emotional and financial toll on a family. Putting in place financial protection against such unforeseen circumstances gives these clients the peace of mind that they can take some time out and be there for their child whatever that may entail.
Because the cover is an optional add-on, it means that families who don’t plan to have any more children in the future, need not pay for cover that they can never realistically claim on.
Whether the cover is suitable for a client will depend on personal circumstances, protection goals and budget. Let’s take a look at some of the key questions and answers surrounding the cover and how advisers can tailor the best solution for their clients:
What is Pregnancy and Early Childhood Cover?
Pregnancy and Early Childhood Cover provides relevant cover from pregnancy right through until a child turns seven and has been specifically designed for those who are planning to start a family, currently expecting a child or hope to add to their family in future.
It is only available alongside Children’s Cover or Children’s Enhanced Cover; it can’t be bought as a standalone benefit.
What does it cover?
Pregnancy and Early Childhood Cover covers ten early childhood conditions: cerebral palsy, craniosynostosis, cystic fibrosis, Down’s syndrome, Edward’s syndrome, hydrocephalus, muscular dystrophy, osteogenesis imperfecta, Patau syndrome and spina bifida. The payout, which can be set at anything between £10,000 and £100,000, is made upon diagnosis of any of these conditions. It also covers four birth defects: cleft lip, cleft palate, congenital talipes equinovarus (club foot) and developmental dysplasia of the hip. The cover pays £5,000 if a child is born with one of these conditions.
“These aren’t life threatening or life limiting conditions,” says Tim Lewis, senior proposition innovation manager at Zurich. “The child will be absolutely fine but they will typically need surgery at six to 12 months of age, often when maternity leave is coming to an end, so money may be tight.
“It is likely to be a very vulnerable time in young family’s life. Both parents will probably want time off to support each other. This £5,000 payment can give the family a bit of financial breathing space at a difficult and emotional time.”
The cover also pays £5,000 in the case of two other eventualities. The first relates to complications of pregnancy. A claim can be made if the life assured or their partner suffer one of six specified complications of pregnancy: disseminated intravascular coagulation, ectopic pregnancy, benign hydatidiform mole, placental abruption, eclampsia (excluding pre-eclampsia) and foetal death in utero between 20- and 24-weeks’ gestation.
Child death benefit of £5,000 is also payable if the child dies from the 24th week of pregnancy.
Zurich's premature birth hospital stay benefit helps with the associated and unexpected costs of a child’s prolonged stay in hospital, such as parking and accommodation. It extends the hospital stay benefit that has been added to Zurich’s children’s cover to pay out before the 37th week of pregnancy at a rate of £50 per night from the 7th night in hospital.
Requiring hospital care at birth is surprisingly common. Statistics from neonatal care charity Bliss shows that every year, more than 90,000 babies are cared for in neonatal units in the UK because they have either been born prematurely (before 37 weeks of pregnancy) or sick.
This means that around one in seven babies born in the UK are admitted to a neonatal unit each year. Some of the most premature and the sickest babies can spend months in hospital. For example, the average length of stay for a baby born between 28 to 31 weeks gestation is 44 days1.
“There is a genuine and demonstrable need here that we can meet for our customers,” says Lewis.
The chance of a baby being born prematurely can also afford a more gentle introduction into a conversation about children’s cover.
“Children’s cover can be a difficult subject for advisers to talk about. What happens if you child was to get cancer?
“But I think we all know someone who was born prematurely. Most premature babies go on to lead full and fulfilling lives. It can be an easier way into that conversation.”
Could my customer benefit?
Pregnancy and Early Childhood Cover focuses on conditions that are likely to be diagnosed before the age of seven. If your customer is planning on having their first child or further children, the cover is a worthwhile addition to help financially protect them during pregnancy and those early years.
It can be added at the point of sale or at any time during the policy. Once their last child reaches seven years old and the cover is no longer needed, it can be removed – and the monthly premiums will reduce accordingly.
“All in all, it’s a really targeted and comprehensive suite of coverage designed as a short-term product option to address a specific need,” adds Lewis. “That’s why we give customers full flexibility to add or remove the cover so that they are only paying to meet their specific protection needs at each life stage.”
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