Should You Take Terminal Illness Cover With Term Insurance?

You tend to overlook yourself while going the extra mile to make things easier for your loved ones or family at home. Your body is inclined to several troubles, which can lead to severe health problems in the future if you have a regular job and possibly a modern and inactive lifestyle. You should never ignore the first signals of any health problem or any hereditary symptoms linked to a terminal illness. In such situations, term life insurance with terminal disease coverage can help you secure your future while financially protecting your loved ones.

What Is Terminal Illness Cover?

When purchasing a term insurance policy, the critical illness rider becomes a necessity. In the event of a medical emergency, a critical illness rider gives further financial support. Since a severe disease can strike without warning, having a rider on your policy is beneficial in emergency situations. On the diagnosis of a critical disease already mentioned in the policy, the insured receives a lump-sum payment under this rider. Critical illness detection may be continued or terminated, depending on the terms and conditions of the policy. As a result, it's crucial to double-check the coverage before deciding on a rider. Many insurance firms are developing novel critical illness riders that also cover lifestyle diseases. In addition, the insured can get reimbursement for both hospitalisation and non-hospitalization expenses.

Should You Take Terminal Illness Cover With Term Insurance?

Here are four advantages of purchasing a terminal illness policy with a term insurance policy.

• Used To Supplement One's Income

When combined with a term plan, terminal illness coverage provides additional benefits. You may have a standard medical insurance policy that covers your hospital and medical bills.

A terminal illness plan combined with a term plan will provide you with security against any unforeseen circumstances and will also cover the cost of routine medical expenditures as well as the cost of drugs. Some term plans also have a premium return option. If you outlive the insurance, you will be reimbursed for all premiums paid during the policy's term at maturity.

• Provide Protection Against Life-threatening Illnesses

Over 60% of all deaths in the country are caused by terminal illnesses. If you only have a term insurance policy with no terminal illness coverage, your family will not be eligible for a payout if you die prematurely. As a result, if you suspect 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 immediately add a terminal illness cover to your existing term insurance plan. This terminal illness insurance can give you and your loved ones a financial safety net in the event of a medical emergency or a loss of income due to the policyholder's illness or death.

• Offers Dual Tax Advantages

A terminal illness cover combined with a term insurance policy can give you dual tax benefits, as the insurance premium paid for this terminal illness cover and a term insurance policy will be exempted in both section 80D and section 80C of the Income Tax Act, 1961.

• A Larger Sum Is Assured With Lower Premium Rates

Term insurance with terminal illness coverage extends a higher coverage amount at the most affordable premium rates, unlike traditional medical insurance policies, which impose varying premium rates after different periods. This is because the number of policyholders who will be diagnosed with a terminal illness is very small compared to the number of regular ailments covered by a medical insurance plan.

Take Away

If you have terminal sickness, it is always better to acquire a terminal illness cover with a term plan rather than a medical insurance plan. Term insurance that includes coverage for terminal illnesses is particularly beneficial. These insurance products can help you and your family overcome obstacles by protecting you and your loved ones from unexpected accidents in the future.

Also read: Can I Take Terminal Illness Coverage With Term Insurance?

Difference Between Critical Illness and Accelerated Terminal Illness Rider

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.