Advisers should consider the impact a sick child could have on a family’s finances when arranging a parent’s life cover, according to Zurich GM Retail Life Phil Kewin.

“Parents with children who suffer severe illness or trauma not only deal with enormous emotional strain but also are likely to suffer severe financial stress,” he said.

“They face unexpected indirect costs of treatment, recovery and time off work – all of which are not covered by Medicare or health funds.”

Mr Kewin says the life industry tends to overlook children when arranging cover, and even studies on insurance levels do not take them into account.

“A recent report from the Australian Institute of Health and Welfare revealed that in 2009 an estimated 7% of children had a disability. More than half [of these] had profound or severe core-activity limitations.”

Children’s cover is offered by a number of insurers, including Zurich, and is reasonably priced, Mr Kewin says.

A policy with $100,000 of cover would cost about $10 per month. “There is generally little underwriting required, so that shouldn’t represent a barrier.”