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Can I Take Terminal Illness Cover With Term Insurance?

Published On Oct 24, 2021

Life is uncertain and diseases can come anytime without any pre-announcement and can cause a negative impact on your physical as well as financial well being. Not just you would have to meet heavy hospital expenses but your work life would also get impacted negatively. Moreover, the instances of skipping office or in the worst case, being asked to quit your work could leave you further anxious and mentally troubled. Such an outcome can undoubtedly impact your flow of income and ability to handle large medical bills.

A term insurance policy with a critical illness cover would not just protect your family members in the event of your untimely death but would even offer protection to them against all types of medical contingencies that can arise abruptly.

Listed below are a few benefits of buying a terminal illness coverage along with a term insurance policy:

  • Offers Protection Against Life Threatening Health Conditions

Around 60% of cumulative deaths in the country are happening because of terminal illnesses. In case you are only having a term insurance policy without terminal illness coverage, your loved ones would not be entitled to get a claim in the event of your sudden death.

Therefore, if you believe that there are chances of you suffering from any kind of terminal illness because you have recently been diagnosed with a terminal illness or family medical history, you should purchase a terminal illness cover immediately as an add-on along with your current term insurance policy.

A terminal illness add-on cover can offer you and your dependents a financial safety net during any medical emergency or income loss that can arise in the event of ill health or death of the policyholder.

  • Act as Income Replacement

A term insurance plan along with a terminal illness cover would offer you with safety against any unforeseen event and would also offer coverage against the regular medical bills and other medicinal expenses. Moreover, there are certain term insurance plans that provide the option of return of premium. Under this option, if you outlive the policy tenure, then you would get back all the premiums that you have paid throughout the plan tenure upon maturity.

  • Provides Dual Tax Benefit

Other than receiving financial protection in the event of getting diagnosed with a terminal illness or any other eventuality, buying terminal illness coverage along with a term insurance plan can offer you with dual tax benefit and insurance premium paid towards this terminal illness cover and the term plan would be tax exempt as per both section 80C and section 80D of the Income Tax Act.

In a Nutshell

Buying a terminal illness coverage along with a term insurance plan is extremely beneficial. These life insurance plans can help you and your dependents face challenges in life by offering you financial protection against unforeseen events that can happen in life.

Also read: 

Things to Consider While Selecting Term Insurance Riders

How Riders Add Value To Term Insurance?

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.

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