Can I Take Terminal Illness Coverage With Term Insurance?
Updated On Jul 16, 2021
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Certain loopholes in your health insurance can easily be filled when you opt for a terminal illness cover along with your term insurance plan. The treatment cost of terminal illnesses like liver and heart diseases or cancer is remarkably high. An only shot of medication in specific kinds of cancer can require a lot of money, and successful treatment demands several doses. Hence, it might not be wrong to state that the expenses of terminal diseases require lakhs of rupees. Usually, the medical insurance policies only pay for the hospitalisation expenses and not the medications or expenses incurred on medicines.
Consequently, it becomes important for people to look for other avenues than a regular health insurance plan. Opting for a terminal illness cover with a term insurance plan can be one such avenue that can take care of your entire medical expenses along with providing mortality benefits.
4 Benefits of Taking Terminal Illness Cover with a Term Insurance
This term insurance plan with terminal illness coverage not only safeguards your family in case of the untimely demise of the policyholder but further protects them with all medical contingencies arising abruptly. If you plan to take a term insurance plan with terminal illness coverage, you must ensure that the term plan you choose provides you with maximum benefits.
Here are 4 benefits of taking a terminal illness cover with a term insurance plan:
1. Serves as an Income Replacement
Terminal illness cover taken along with a term plan presents supplemented advantages. You might be holding a normal medical insurance policy that will meet your hospital and health expenses. A terminal illness plan with a term plan will present you with protection against any unfortunate event and further cover the cost of routine medical payments along with the expense of medicines. Also, some term plans offer a return of premium option. In case you outlive the policy, you will receive all the premiums you have paid throughout the policy term at maturity.
2. Protection Against Life-threatening Medical Conditions
Terminal illnesses account for over 60 percent of cumulative deaths in the country. If you simply have a term insurance plan without terminal illness cover, your family will not be entitled to receive a claim in case of your untimely demise. Hence, if you think you might suffer from a terminal illness due to past family medical history or recently diagnosed with a terminal illness, you must immediately take a terminal illness cover as a top-up with your existing term insurance plan.
3. Offers Dual Tax Advantages
Apart from receiving monetary protection in case of a terminal illness or any other unfortunate event, a terminal illness cover taken with a term insurance policy can provide you with dual tax advantages and insurance premium paid for this terminal illness cover and a term insurance policy will be exempted in both section 80C and section 80D of the Income Tax Act, 1961.
4. Higher Sum Guaranteed with More Inexpensive Premium Charges
Unlike conventional medical insurance policies, which impose different premium rates after distinct periods, a term insurance policy with terminal illness cover extends a higher coverage amount at the most economical premium rates. This is because the mediocre expense included in handling terminal illnesses is as huge as Rs 20 Lacs. In addition to this, the number of policyholders encountering a terminal illness is reasonably more limited as contrasted to that of normal diseases incorporated by a medical insurance plan.
It is always best to take a terminal illness cover with a term plan instead of a medical insurance plan if you are suffering from any terminal illness. Term insurance with terminal illness coverage is extremely advantageous. These insurance plans can assist you, and your loved ones surmount difficulties by outfitting you against unexpected accidents that can happen in the future.
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.