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Child Care Costs Insurance - Kids Cover Review

By Sandy Naidu | August 19, 2008







In my previous post I had written about my annoyance about paying child care fees even when my son is at home sick. I am sure many parents will join me on this one.

Kids Cover is a new insurance policy which aims to cover parents for child care costs when their kids are at home sick. Here is my review about this policy:



Company Behind Kids Cover


Allianz Australia is the insurer for this policy. However Allianz does not have the authority to deal with end customers about this policy.



All your correspondence will be with an insurance broker - Altiora Retail. Altiora Retail is the company that will be handling all your customer queries and payment processing.




All your premium payments though will be made to Allianz Australia and all your benefit payments will also be from Allianz Australia.



Kids Cover Details



Here are the step by step details you need to know about Kids Cover Policy:

  • The policy reimburses your child care costs, when your child is unable to attend child care due to illness. The money you will reimbursed will be :

    child care fees minus child care benefit minus child care rebate

  • Benefit Period: You will be able to claim only for a maximum of 26 weeks in one claim. That is, if your child is unable to attend child care for more than 26 weeks continuously then you will only be able to claim for the first 26 weeks.
  • Deferral Period: There are two types of covers -
    a. 3 Consecutive Days - You will be unable to claim for the first three consecutive days (consecutive days your child attends child care).

    b. 2 Consecutive Days - You will be unable to claim for the first two consecutive days (consecutive days your child attends child care).



    Example: Assume your child attends child care all five days. If he falls sick on Monday, then under ‘3 Consecutive Days Policy’ you will be unable to claim for Monday, Tuesday and Wednesday. You can only claim from Thursday (from the fourth day). So basically you get money back only if your child is at home for 4 or more days.

    Under ‘2 Consecutive Days Policy’ you will be unable to claim for Monday and Tuesday. You can only claim from Wednesday (from the third day). So basically you get money back only if your child is at home for 3 or more days.

  • You will be unable to claim for any pre-existing conditions. According to the PDS, “Pre-Existing Condition means a condition with which the Insured Person was aware of (whether diagnosed or not) or has sought treatment prior to the inception of his or her policy.”
  • Costs:

    3 Day Consecutive Period - $61pa if you pay up to $200 per week in childcare fees and $91pa if you pay over $200 per week

    2 Day Consecutive Period - $120pa if you pay up to $200 per week in childcare fees and $170pa if you pay over $200 per week




Conclusions



It is inexpensive and am happy on that front. Having said that I have a feeling that these premium figures were arrived at before the announcement of the recent child care rebates. The child care rebate will substantially reduce the amount the insurer has to pay us, in case we make a claim. If the insurer has not factored in the child care rebate into the premium then maybe they should revisit this area and reduce the premiums further.

This policy is worth if your child is going to care for 3 more days. It is most beneficial if your child will be attending care full time. My son attends care on Monday and Friday. So if he falls sick on Friday, then under 2 Day Consecutive Period, then the following Friday will be the first day I can claim for. Under 3 Day Consecutive Period, I have to wait for Friday, Monday, Friday (ie one full week)…..So basically your child should be sick for much longer before you start benefiting.

If I opt for 2 Consecutive Day policy then I will be paying around $2.40 per week. Not bad…I am not taking out this policy this year - But will be taking it out next year. I will write another post and update you as soon as I take this policy out.



Overall I am quite happy - This is the first of its kind - I am hoping that many will follow (more competition means good news for end customers).



Do you have kids in care? if so, what are your thoughts about this policy…







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Topics: Insurance, Product Reviews |

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