Specified illness cover from birth is exception in Ireland

While Irish Life may be the first insurance company in the Irish market to offer specified illness cover from birth, a delayed or deferred start to cover remains very much the norm within the industry.

Aviva continues to offer child life cover for death as part of a family plan from 30 days and child critical illness cover from 30 days with both policies continuing until the child turns 21 years.

Asked why it did not provide child life cover and child-specified illness cover from birth, Aviva said that it would not able to financially sustain the cost of providing such cover from birth.

"We provide cover for children free of charge as part of their parents' life or critical illness cover. We are able to absorb the cost of cover when we offer it from 30 days. This would not be possible if we provided cover from birth as unfortunately, the risks would be significantly higher," according to an Aviva spokesman in response to a query from Health+Family.

However, while Aviva continues to exclude children from cover until they reach 30 days, it does offer a new benefit plan for overseas treatment which commences at birth for children.

Aviva’s Overseas Treatment Plan costs €12.50 per month per life insured but is only available as an add-on to a main mortgage or personal income protection policy and not as a standalone policy.

Pre-determined benefit

Aviva says the plan is not a form of private health insurance and is not intended to replace private health insurance but is a life insurance benefit which pays out a pre-determined benefit.

Under the plan, Aviva will pay €30,000 per day for the first seven days of treatment in the US or €15,000 per day for the first seven days of treatment in a European country.

After the first seven days, Aviva will pay €100 per day from Day 8 to Day 60 in both the US and Europe, but the company stresses it is not paying medical costs but a pre-determined benefit.

The benefit can be used to offset medical costs as well as travel and accommodation costs which can often be a huge drain on a family’s finances if they have to travel abroad for specialist treatment.

Aviva says that it can provide this benefit, which it introduced to the Irish market on July 16th, from birth because of the nature of the two conditions that it covers – namely cancer and neurosurgery.

The plan is being operated in conjunction with Aviva's partner, US company Best Doctors, who will give the policy holder a choice of four treatment centres outside of the Republic of Ireland.

According to a spokeswoman, Aviva is constantly looking at new products to meet customer needs and it saw Best Doctors were offering similar products in several European countries.

Focus groups

Aviva introduced the plan in the UK in 2015 and later began testing it among Irish consumers using focus groups and it was well received particularly among those with young families.

Zurich Insurance offer child life cover from three months and child critical illness from one year, both extending until the child reaches 18 years or 21 years if in full-time education.

Friends First offers child life cover and child critical illness cover from 30 days to 18 years or 21 years if in full-time education, while New Ireland Assurance offers both from six months to 18 years.

Meanwhile Royal London offers child life cover from three months and from one year for critical illness cover with both policies continuing until the child reaches 18 or 21 if in full time education.

Contacted by Health+Family, Insurance Ireland, the representative body for insurance companies, said it was not able to answer why most insurance companies don't offer child cover from birth.

“The underwriting process for life assurance policies . . . is a specific business decision made by each company and Insurance Ireland does not comment on the business processes of its members.”