All it takes to protect your family is a comprehensive life insurance plan that has been well-thought-out, keeping in mind their needs and security. However, your term insurance policy may not always be enough for sudden and untoward emergencies, especially medical emergencies. No matter how extensive the coverage of your term policy, it may turn out to be inadequate if your family is faced with a critical illness.
What Is a Critical Illness Benefit?
A critical illness cover in a term insurance plan provides a lump sum amount to the policyholder on the diagnosis of a specific critical illness that is covered under the plan. This cover lets you receive payouts for meeting hospitalisation bills if you are diagnosed with a critical illness during the policy term. It could also include medical management of illnesses. A critical illness cover can enhance the coverage of your term plan and provide complete financial protection by covering the hospitalisation bills and more.
Why Should I Opt for the Critical Illness Benefit Rider?
To understand how a critical illness cover can benefit your term policy, let’s take a look at five such advantages.
- An extended cover with low premium:
Including a critical illness cover in your term plan means that your insurance coverage will increase at a minor, additional premium. This is because the premium calculation is determined together when you purchase the term plan and the critical illness cover. In fact, it is always easier to make this calculation with the help of a term insurance premium calculator.
Therefore, if a critical illness strikes, you will be able to get the benefits out of the extended protection, but there will be no need to pay an exorbitant premium for the same.
- An income replacement benefit
In case of a critical illness, it is obvious that the affected member will not be able to care for the family. If that person happens to be the only earning member, it makes things all the more difficult. A critical illness cover not just covers the medical expenses or the treatment bills but also provides an emergency income for the family while the policyholder is undergoing treatment or recovering from the illness. The income replacement benefit saves the family from the hassle of disturbing their savings during such times.
- Cover against life-threatening diseases and ailments
Critical illnesses are much more serious than they appear to be, accounting for more than 60% of the total deaths all over the world, says a Global Economic Burden of Non-Communicable Diseases study. Additionally, diseases like cancer and heart attack are on the rise among the urban population due to a number of factors, ranging from poor lifestyle habits to work stress-related pressure.
To ensure that your critical illness cover can provide adequate protection against such dreaded ailments, you can calculate the amount of coverage required with the help of the Tata AIA term insurance calculator. Thus, in the event of a critical illness, this benefit covers a number of serious and life-threatening ailments and disabilities, thereby offering you complete protection.
- Improved chance of survival
When you’re affected by a critical illness, getting access to quality treatment on time is highly crucial. Without proper treatment on time, there is an increased risk of the condition deteriorating and the illness progressing rapidly. However, getting timely and appropriate medication and treatment on time can be really expensive, and without apt financial resources, there may be untoward health complications due to delays.
Since a critical illness benefit covers the expenses of the best possible treatment there is, there is a better chance of you getting the right treatment and of your health improving without any complications.
- More tax benefits
With a term insurance plan, you can avail of a deduction of up to ₹1.5 lakhs on the premiums of the policy under Section 80C of the Income Tax Act. Likewise, the death benefits of a term plan are also exempt from taxes under Section 10(10D) of the Income Tax Act. If your term policy includes a critical illness cover, you can avail of a further deduction starting from ₹25,000 under Section 80D.
Adding a critical illness cover to your term insurance plan is simple. When you purchase the term insurance plan, simply select the critical illness coverage along with it, and you will be prepared to protect yourself and your family from sudden emergencies.