A fortnightly pearl of wisdom to fast track your success
CHRISISM #41 - Child Trauma Cover - An Absolute Must
16 May 2017
If you are not currently making sure that all eligible children are covered with Child Trauma Cover on their parent’s adult trauma policy, then you need to read on and rectify this situation.
I have had a quite a number of advisers who have told me that they don’t always make sure that eligible children are added to one of their parent’s adult trauma policies and the reason they often give is that the parents don’t really want to have that conversation because they don’t even want to contemplate something bad happening to their kids.
My message to you loud and clear in that case is:- “Then don’t have that conversation!” That is to say – don’t present Child Trauma Cover as an optional extra; present it as an automatic inclusion which is a fantastic benefit and cheap as chips! This way all eligible children will be covered.
Why is Child Trauma Cover so important? When it first became available, I thought that it would be a good idea because, in the event of claim, the money could be very handy to cover medical costs in the event of a child’s serious illness or accident – and indeed this could well be the case. But it was only sometime later, as a result of the real life experience of another adviser who I knew quite well, that I realised what the most important benefit of Child Trauma Cover typically was.
If you ask any doctor they will tell you that, in the event of a child suffering a major illness or injury, then by far and away the biggest facilitator and accelerator of the child’s recovery will be their ability to spend time with both parents, and the payment of a lump sum would therefore allow the breadwinner to take time off work as unpaid leave in order to spend that time with their child. This becomes especially important in this day and age when “compassionate leave” would probably be a long lunch. Of course the lump sum could also be necessary to cover medical expenses.
This potential benefit becomes a total ‘no brainer’ when you consider that the cost of say $100,000 of Child Trauma Cover is approximately $120 per annum! In addition to this, Child Trauma Cover is convertible to P Plater Protection (see Chrisism#5) at age 18 with no underwriting, which therefore creates an easy transition to long term Adult Trauma Cover. So why not make the Child Trauma Cover $200,000 for less than $5 a week?!
Hopefully you can now see why Child Trauma Cover should be an automatic inclusion on the parent’s adult policy, but consider also the benefit to you of pursuing this practice – quite apart from some extra revenue in your pocket, if you were to write 2 average personal protection packages a week with 2 eligible children per package, then you would have 100 guaranteed new clients per annum coming on board any time between two and sixteen years’ time, thereby creating a guaranteed new client pipeline simply as a result of doing the right thing by your clients.
If you have found the content of this “Chrisism” valuable and you think that you can translate the ideas into a mutual benefit for your clients and your business, then imagine how much you and your clients could benefit from a whole day of new ideas!
I will be running my full day Risk Workshop in all 5 major capitals in July/August and I would love to see you at the workshop in your capital city. Just click on the link below to access the details of all the workshops and get your free copy of my book “The Risk Workshop” on registration.
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The Risk Workshop by Chris Unwin
Are you a financial adviser who would like all of your clients to have appropriate types and levels of personal protection? But perhaps you feel you need a more structured and client friendly engagement process?