Life indexation life assurance

[sultanas]

I recently made a claim on my serious illness section of my life assurance for my child.
This policy was index linked and when I started it my cover was 40 k with child cover of 50% of life assured of parent subject to a maximum limit of 10k. Over the years this policy grew to 4 times original cover, how will the child cover be calculated will it be index linked in the same ratio ?

My child has miraculously come through the illness TG

 

[Sumatra]

Depends on the insurer. The child benefit is normally 50% of your serious illness cover at the time of claim subject to a max child serious illness benefit. For example if your policy states the max child serious illness benefit is €25,000 and you have €100,000 cover on yourself then 50% of €100,000 is €50,000 but the max benefit on a child is limited to €25,000 so €25,000 is the amount that would be paid out. Policies differ so you'd have to check your policy terms and conditions.

Remember when you are putting in a claim always continue to pay your premiums.