Protection for Your Children – Simple, Affordable, and important

Child Insurance

By purchasing Child Insurance, you can cover unexpected costs and changing circumstances that come with serious accidents or illnesses of children.

Child Insurance also protects the child from potential future income loss due to accidents or severe illnesses.

We recommend that all parents of children under the age of 16 purchase Child Insurance. The insurance costs only ISK 1,079 per month.

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Child insurance is a combined insurance that protects the child from future loss of income, caused by accidents or serious illnesses, as well as helping parents who suffer loss of income and unforeseen costs, due to illnesses or death of their children.

Why Should I Purchase Child Insurance?

If a child becomes seriously ill, it can result in significant expenses and income loss for the parents. Serious illnesses can also impact the child's future earning potential.

With Child Insurance, you can better manage these costs and changing circumstances and focus on what truly matters—caring for your child.

Child Insurance consists of five coverages:

Future Protection compensates for the child’s future income loss if a disease or accident leads to permanent medical disability of 10% or more. The compensation is deposited into a locked account, which the child can access at the age of 18. The base insured amount for Future Protection is ISK 12,000,000, with a maximum payout of ISK 39,000,000.

Adaptive Protection helps the family adjust to changed circumstances following a traumatic event. If an accident or illness results in permanent medical disability of 10% or more, compensation of up to ISK 4,000,000 is paid.

Care Protection provides compensation for care in a hospital or at home or a grant if the child needs surgery abroad. If the child is hospitalized or requires 24-hour care at home for a specified number of days within a 120-day period, the benefit is paid in a lump sum. If hospitalization or care needs last at least 30 days, half the amount is paid, and the full amount is paid after 60 days. The maximum benefit for Care Protection is ISK 1,000,000. Additionally, Care Protection provides a grant of ISK 500,000 if the child needs surgery abroad.

Critical illness Protection provides compensation if a child is diagnosed with cancer, MS, diabetes, severe burns, cystic fibrosis, juvenile arthritis, AIDS due to accidental exposure, ulcerative colitis, Crohn’s disease, bacterial meningitis, a benign brain tumor, requires an organ transplant, or is diagnosed with end-stage kidney disease. The compensation for Illness Protection is ISK 2,000,000.

Death benefits are paid if a child passes away while the insurance is in effect. The death benefit is ISK 750,000.

All Child Insurance benefits are tax-free and paid out in a lump sum.

When Should I Purchase Child Insurance?

How Much Does Child Insurance Cost?

How Much Are the Benefits from Child Insurance?

What Happens if the Policyholder Passes Away During the Policy Term?

What is covered?	What is not covered?
Future protection pays benefits to a child for:	Future protection does not cover:
Medical disability due to an accident or disease.	Accidents not caused by a sudden and unexpected event.
Adaptive protection pays compensation to:	Adaptive protection does not cover:
Compensation if a child ‘s accident or sickness leads to medically assessed disability.	Medical disability rated lower than 10%.
Care protection pays:	Care protection does not pay benefits:
Benefit a child needs hospitalization or round the clock care at home. Grant for medical surgery abroad.	If compensation have previously been paid due to accident or disease. For medical surgery performed in Iceland.
Critical illness protection pays benefits if the child is diagnosed with:	Critical illness protection does not pay benefits:
Cancer. MS-Disease. Diabetes 1. Severe burns. Cystic fibrosis. Arthritis. AIDS due to injection accident. Ulcerative colitis (Colitis Ulcerosa). Crohn‘s disease. Bacterial meningitis. Benign brain tumour Major organ transplant End-stage kidney failure	For stage 0 cancer (cancer in situ). If neurological symptoms last less than six months. If insulin treatment lasts for three months or less. For burns less severe than 3 degrees. Temporary lung disease. Arthritis due to infection. Ulcerative colitis and Crohn‘s disease not diagnosed by a specialist. Parasitic meningitis. Benign tumour in pituitary gland If the condition can be cured without organ transplant. For reversible kidney failure.
Death benefits are paid if:	Death benefits are not paid for:
A child dies while the insurance is in effect.	A disease showing symptoms before the Insurance took effect.

Any limitations on what the insurance covers?

The insurance does not cover children younger than one month old or over 20 years of age.

Where is the insurance valid?

The insurance policy is valid anywhere in the world.

What responsibilities do I have?

You must report any damage as soon as possible and no later than one year from the date of the damage.
You must ensure that all the information in the insurance policy is accurate.
You must inform us of any changes in your address, telephone number, and email address.
You must follow all the precautions in the terms of the insurance policy.

When and how do I pay the premium?

The premium must be paid on the due date. When the insurance policy is issued or renewed an electronic claim is created in your online bank. You have the option to distribute the premium payments by:

Credit card payment, where the premium is charged monthly to a credit or debit card.
Direct payment, where your bank account is debited monthly.

When does the insurance start and when does it end?

The insurance policy takes effect upon receipt of a written and complete application from you, provided it is approved. A written application also refers to an electronic application.

How do I cancel the insurance?

Individuals and companies with fewer than five full-time positions can cancel the insurance at any time and it will expire at the end of the following month after the cancellation is received. Other companies can cancel their insurance one month in advance before the end of the insurance period.
The cancellation must be in writing, e.g. with an electronic signature, and will be valid immediately upon receipt.

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Please note that the insurance does not cover accidents that occurred or illnesses diagnosed before its effective date, nor their consequences. It also excludes illnesses diagnosed within the first three months after it became effective.

If the insurance has been in effect for 2 years and the policyholder of the Child Insurance (under 65 years of age) passes away during the policy term, we will pay the premium, and the child remains insured until the age of 20.

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What is covered?	What is not covered?
Future protection pays benefits to a child for:	Future protection does not cover:
Medical disability due to an accident or disease.	Accidents not caused by a sudden and unexpected event.
Adaptive protection pays compensation to:	Adaptive protection does not cover:
Compensation if a child ‘s accident or sickness leads to medically assessed disability.	Medical disability rated lower than 10%.
Care protection pays:	Care protection does not pay benefits:
Benefit a child needs hospitalization or round the clock care at home. Grant for medical surgery abroad.	If compensation have previously been paid due to accident or disease. For medical surgery performed in Iceland.
Critical illness protection pays benefits if the child is diagnosed with:	Critical illness protection does not pay benefits:
Cancer. MS-Disease. Diabetes 1. Severe burns. Cystic fibrosis. Arthritis. AIDS due to injection accident. Ulcerative colitis (Colitis Ulcerosa). Crohn‘s disease. Bacterial meningitis. Benign brain tumour Major organ transplant End-stage kidney failure	For stage 0 cancer (cancer in situ). If neurological symptoms last less than six months. If insulin treatment lasts for three months or less. For burns less severe than 3 degrees. Temporary lung disease. Arthritis due to infection. Ulcerative colitis and Crohn‘s disease not diagnosed by a specialist. Parasitic meningitis. Benign tumour in pituitary gland If the condition can be cured without organ transplant. For reversible kidney failure.
Death benefits are paid if:	Death benefits are not paid for:
A child dies while the insurance is in effect.	A disease showing symptoms before the Insurance took effect.