While we would love to think that our kids will always be fit and healthy and have nothing to worry about, many parents are concerned with the risks of teenagers getting behind the wheel and possibly having an accident. This concern is warranted considering most nights you hear reports on the news about young drivers, especially P-platers, who are injured or killed on Australian roads. For example, did you know:
- 45 per cent of all young Australian injury deaths are due to road traffic crashes
- Of all hospitalisations of young Australians, almost half are drivers involved in a road traffic crash and another quarter are passengers
- Young drivers (17 – 25 years) represent one-quarter of all Australian road deaths, but are only 10 – 15% of the licensed driver population
- A 17-year old driver with a P1 licence is four times more likely to be involved in a fatal crash than a driver over 26 years
- One-third of all speeding drivers and rider in fatal crashes are males aged 17 – 25; 6 per cent are females aged 17 – 25
(Source: Australian Institute of Health and Welfare (2007). Young Australians: their health and wellbeing.)
If your child was ever involved in an accident the emotional impact resulting from these events would be immeasurable. Unfortunately, the financial stress of dealing with hospitalisation and treatment of injuries can also be overwhelming. However, there are strategies that can be put in place that can assist should an unfortunate accident occur.
It is possible to insure against accidents involving young adults. This insurance provides a lump sum benefit that can assist in providing medical help and rehabilitation. It may also allow a working parent to cease working and provide care and attention to their injured child. The kind of injuries that can be covered include:
- Severe burns
- Major head trauma
- Loss or paralysis of limb
The age at which children can be insured differs, as does the levels of insurance.
Example case study:
Kim and James spoke to their financial adviser regarding their wealth protection needs to protect their young family financially. They have two children, Tristan and Grace, who are 15 and 13 years old respectively. Like all typical teenagers, Tristan can’t wait to get his licence and go out for drives with his mates. Kim and James understand the risks with young drivers and they admit to having concerns.
Kim and James’ financial adviser recommended child cover as an added option to their risk strategy to address these concerns.
Tragically, three years later, Tristan was a passenger along with three other teenagers in a car being driven by a P-plater. Tristan suffered severe burns to over 40% of his body and head trauma. Kim and James’ child cover policy paid a lump sum benefit of $200,000. This benefit enabled them to provide their son with the appropriate medical care and rehabilitation. In addition, Kim used some of the funds to enable her to take six months off work to be by Tristan’s side during this difficult time.
If you have any questions about child cover and whether it is right for your family, get in touch with Ausure Scone.