Term Insurance Plans For Disabled People
Updated On Jun 15, 2021
Table of Contents
A term insurance plan is a highly economical protective life cover provided by an insurance provider. It acts as a financial safety net for the policyholder's family and dependents in the face of an unfortunate event before the policy term's end.
Hence, according to the distinct needs of a person, purchasing a suitable term insurance plan after a critical analysis of different policies is advisable. This advice becomes more necessary in a disabled or differently-abled person's case as his/her need is much more complex than physically fit individuals. Read on to know what factors should be considered while purchasing a policy for a disabled person to get the maximum benefits.
How Can A Differently-Abled Person Avail The Term Insurance?
A disabled or a differently-abled person has to submit the following documents to avail a term insurance plan.
- Declaration - The life assured has to submit a detailed report to declare their disability.
- A Doctor’s Report - The life assured will be requested to submit a report by a doctor.
- Information About A Recent Medical Test - The life assured is required to share the information related to their recent medical test, a check-up or a recent visit to the doctor.
Factors To Consider Before Purchasing A Term Insurance Plan For Disabled People
Here are some factors that a differently-abled person should consider before buying a term insurance plan.
1. Insurance Cover
It would be best if you buy a term insurance plan with coverage that will adequately meet the future financial requirements of your beneficiary or nominee after your death. You can calculate the sum assured to determine if the cover will satisfy your dependents' needs.
2. Premium Amount
You should confirm that the premium is payable and under your budget before purchasing a policy so that you can neutralize the risk of being a payment defaulter. Moreover, you can buy a policy whose provided coverage is proportional to the premium rates.
3. Rider Options
Some term insurance plans offer rider options like waiver of premium riders or long-term care riders, which can be pretty helpful for people with disabilities. So, it is advisable to ensure that you invest in the right rider, which will enhance your term plan.
Benefits of The Term Insurance For Disabled Individuals
The following are some benefits that people with disabilities will get through their term insurance plans.
1. Financial Security For The Beneficiaries
The death benefits help handle the family's financial problems if the policyholder passes away during the term of the policy. The beneficiary can use the amount to pay off debts or other expenses left by the policyholder.
2. Medical Expenses
Most companies offer term insurance with additional riders that can help pay frequent visits to the hospital for regular check-ups or any complications caused by the underlying disability, which can put a strain on an individual’s pockets.
3. Tax Benefits
Through Income Tax Act's section 80C, you can reduce your tax liabilities by deducing the paid premium from the total income. In addition, section 10(10D) of the Income Tax Act ensures that the death benefit availed by the beneficiary of a disabled person is not taxable. Hence, people with disabilities can enjoy the protective cover and tax benefits by investing in term insurance policies.
Endnotes
The term insurance policies for people with disabilities can be easily availed by taking the measures mentioned above. It is advisable to consult with the entrusted insurance agent or a credible financial advisor to map out the financial needs of your dependents or in case of any emergency due to an underlying handicap.
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