It’s devastating to watch the nightly news and see reports of young drivers, especially P platers, who are fatally injured or worse, killed on Australian roads.  As a mum of two P-platers, it certainly concerns me.
Unfortunately, there are no signs of this problem reducing. The anxiety and fear parents have about their children driving are real, and are highlighted by the figures below:

• 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

References
Australian Institute of Health and Welfare (2007). Young Australians: their health and wellbeing. Cat. no. PHE 87. 2006, Canberra: AIHW, available here.
Parents of teenagers are aware of the above risks, especially as their children get closer to driving age. The emotional impact resulting from these events are immeasurable. However, the financial stress can be limited with the right strategies in place.
A lump sum benefit may assist in providing a young adult with medical help and rehabilitation. It may also allow a working parent to cease working and provide care and attention to their sick child.
Child Cover – A general overview
Child cover pays a lump sum benefit if the insured child suffers a specified traumatic illness or passes away. Some of the specified conditions covered in this product are consistent with conditions suffered from a car accident, such as:

• Severe burns
• Major head trauma
• Loss or paralysis of limb
• Death

Minimum entry age: 2, Maximum entry age: 15
Expiry age: 21 ( with an option to convert to Life Cover with optional Trauma without medical underwriting)
Minimum sum insured: $10,000, Maximum sum insured: $200,000
 
Case Study:
 
Jennifer and Adam speak to their financial adviser regarding their wealth protection needs to protect their young family financially. They have two children, Harry and Gemma, who are 15 and 13 years old respectively. Like all typical teenagers, Harry can’t wait to get his licence and go out for drives with his mates. Jennifer and Adam understand the risks with young drivers and they admit to having concerns.
Jennifer and Adam’s financial adviser recommend Child Cover as an added option to their risk strategy to address these concerns.
Tragically, 3 years later, Harry was a passenger along with 3 other teenagers in a car being driven by a P plater. Harry suffers severe burns to over 40% of his body and head trauma. Jennifer and Adam’s 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, Jennifer used some of the funds to enable her to take 6 months off work to be by Harry’s side during this difficult time.
 
Don’t hesitate to get in touch with one of the Wealth Planning Partner’s advisers now for more information on how we can assist your family.