5 Reasons Why You Should Choose Terminal Illness Benefit With Your Term Insurance Policy

Critical illness insurance provides coverage for catastrophic and long-term illnesses that may necessitate costly medical treatment. Cancer, heart disease, kidney disease, paralysis, third-degree burns, liver disease, limb loss, and other conditions may be covered. The protection offered is a surefire way to provide you and your loved ones peace of mind. When a critical illness is diagnosed, the policy normally says that the insurer will pay a lump sum payout.

There are various other advantages to purchasing critical illness insurance along with your term insurance policy. However, before you choose it, make sure you read the policy's terms and conditions thoroughly. Begin by looking over the list of essential illnesses covered by the policy and ensuring that the most common ailments are included. If you have a family history of certain critical illnesses, double-check that the policy covers them. You should be informed of the average cost of medical treatment in your area for more serious conditions, including hospital stays. Take inflation into account as well, and you'll be able to calculate the amount of coverage you'll need in term insurance. After that, look over the exclusions and the claim procedure. Understand the conditions under which critical illness insurance can be claimed and whether the process is straightforward.

Why Should You Choose Terminal Illness Benefit With Your Term Insurance Policy?

Here is why it is important to choose terminal illness benefits with your term plan:

1. Critical Illness Insurance Tax Benefits

When you combine a term plan with a critical illness coverage, you can save even more money on taxes. Section 80C of the Income Tax Act of 1961 covers term plans, but Section 80D of the act exempts critical illness insurance. Section 10 exempts the revenues from certain features of your term policy (10D). On two counts, you profit from tax savings.

2. Covers Medical Expenses 

With India's rising healthcare costs, each ailment comes with a substantial medical bill for the patient and their family. From hospitalisation to expensive tests and medicine, the expenses are incalculable. When you combine your term plan with critical illness insurance, the lump sum payment will go a long way toward covering your medical costs. The ability to file a cashless claim is not always guaranteed by Mediclaim. The lump-sum payment made at the time of diagnosis relieves you and your family of the stress of attempting to gather money for your treatment.

3. Ensure Life-Threatening Illnesses are Protected

Terminal illnesses account for more than 60% of all deaths in the country. If you simply have a term insurance policy with no terminal illness coverage, your family will be unable to get a settlement if you pass away prematurely. As a result, if you fear you will develop a terminal illness as a result of your family's medical history, or if you have already been diagnosed with a terminal illness, you should add a terminal illness cover to your existing term insurance plan as soon as possible. In the case of a medical emergency or a loss of income owing to the policyholder's illness or death, this terminal illness insurance can provide financial security for you and your loved ones.

4. Replacement of Income

A term plan with a critical illness benefit can provide you with a ready source of income in the event of your unexpected death as well as your incapacity due to a major illness. In either case, your family would require a replacement source of income for the one you were bringing. This is especially true if your spouse is a stay-at-home mom who does not contribute financially to the household.

5. Lower Premium Rates Ensure A Larger Sum.

In contrast to standard medical insurance policies, which impose various premium rates after different periods, term insurance with terminal illness coverage provides a higher coverage amount at the most inexpensive premium rates. This is due to the limited number of policyholders who will be diagnosed with a terminal illness in comparison to the number of common ailments covered by a medical insurance plan.

Take Away

The added security that critical illness insurance provides for you and your family is invaluable. It's impossible to forecast what will happen to whom and when in today's fast-paced society. The only thing you can do is prepare for the worst-case scenario.Your first step toward a stress-free existence is to include critical illness coverage in your term plan insurance.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.