Here's Why Your Term Plan Needs A Critical Illness Benefit Rider.
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Under the term plan, the policyholder has to pay a premium regularly or a one-time payment depending upon the type of policy purchased. A sum of money (death benefit) is paid to the nominee if the policyholder dies during the period for which he/she is insured (policy term). The policyholder also gets a range of options to get enhanced protection.
Some term plans also provide protection to the policyholder in the form of cash payouts on diagnosis of major illnesses like cancer, or heart attack or organ failure. Critical illness can dry out a person's finances in an unprecedented way and since they come without a warning, it's best to have a term plan with a critical illness benefit.
Reasons Why Critical Illness Benefit is Required
Five Reasons why your term plan must come with a critical illness benefit:
1. Acts as an income replacement
2. Premiums stay the same
3.Double tax Benefits
4. Gives you a large cover that can take care of medical & day-to-day expenses
5. Increases chances of survival
A term insurance plan that comes with a critical illness benefit can cover both hospitalisation and non-hospitalisation expenses too and may also provide much needed cash flow during the recovery period. Alternatively, you can go for a higher health cover as a regular health cover provides a much wider coverage.
When one is very ill, the medical bills mount up. Things get worse if the patient happens to be the sole bread earner as then there is no source of income at all and the going gets tough.
Conclusion
Therefore, it is important for all of us to be prepared to handle such a situation and insurance builds our confidence to face such a challenge. With a critical illness cover along with a term plan, one can get a tax-free lump sum in a one-off payment if one is diagnosed with a serious illness that is covered by insurance companies.
Also read- Here Are Some Frequently Asked Questions About Life Insurance Riders.
What Are Life Insurance Riders and How Can They Help You Get More Coverage
