Term insurance with critical illness^~ benefit is one of the best combinations of life insurance that you can opt for. Term insurance offers financial security to your loved ones in your absence, supporting them to lead the lives you have envisioned for them. In addition to this, a term plan with a critical illness benefit secures you too, by providing you with protection against the costs of medical ailments. This makes for an ideal policy with many advantages.

What is term insurance with a critical illness benefit?

A critical illness benefit is an optional add-on in term insurance policies that covers you against the costs of treatment of any of the listed ailments in your policy. The most common life-threatening illnesses include cancer, heart attack, stroke, kidney failure, and other critical illnesses. When you buy term insurance with the critical illness benefit option, you can claim the sum assured on the diagnosis of a critical ailment covered under your plan. You can then use this money to clear hospital bills, ambulance charges, doctor’s fees, medicine costs or however else you deem fit.

Benefits of Buying Term Insurance with a Critical Illness Cover

A critical illness benefit can offer many benefits, such as:

Lump sum payment without deductions

On the diagnosis of any of the listed diseases in the plan, you can claim instant lump sum payments without any hidden costs and use the money towards getting treatment.

Coverage for medical expenses

You can use the payout without restrictions of any kind and cover all related costs of a medical issue, such as hospitalisation, ambulance expenses, cost of medicines, room rent, and a lot more.

Income replacement

If you lose your ability to work and earn, the claim received from term insurance with critical illness benefit can be used as a substitute for your income. This money can cater to a number of needs and requirements.

More tax^$ benefits

You can enjoy additional tax^$ benefits up to ₹ 7,800/- on premiums paid towards term insurance with a critical illness benefit. This is over and above the ₹ 46,800/- tax^$ saved on your term insurance plan

Who should buy a Term Insurance with a Critical Illness benefit?

The following people can consider buying a term insurance with critical illness benefit:

Self-Employed Individuals

Due to the unpredictable nature of their work, self-employed individuals may not have ample savings for medical expenses. In such a case, term insurance with a critical illness rider can be helpful.

Individuals with Limited Savings

Individuals with limited savings can purchase a term insurance plan with a critical illness rider. The payout received under this benefit can help them cover the expenses related to a medical emergency. Thus, they can use their savings to fulfill other financial goals.

Individuals with a Family History of Critical Illnesses

Individuals with a family history of critical illness may be more susceptible to suffering from the same health conditions. Term insurance with a critical illness cover can offer these individuals peace of mind and the necessary financial support if need be.

Family Breadwinners with dependents

Breadwinners have multiple financial responsibilities, which makes it difficult for them to save for healthcare. Term insurance with a critical illness benefit can be an effective tool for navigating these responsibilities.

Individuals over the age of 40

People over the age of 40 may be more likely to suffer from critical illnesses due to increasing age. Buying a critical illness rider with term insurance can be advised for individuals in this age group.

How does a critical illness benefit option work?

In order to buy the critical illness benefit, you need to pay a small extra cost over and above your term insurance plan’s premium. After you purchase term insurance with a critical illness benefit, you will receive an instant payout in a lump sum on the first diagnosis of any of the illnesses listed above.

Steps to Buy Term Insurance with Critical Illness Benefit

Here are the steps to purchase a critical illness benefit with term insurance:

• Step 1 - Select coverage and policy tenure:

  Determine the term insurance coverage you require and choose a policy tenure suitable for your needs

• Step 2 - Add critical illness rider:

  Opt to add the critical illness rider to your term insurance policy

• Step 3 - Check premium:

  Review the premium for the term insurance plan after adding the critical illness rider to ensure it aligns with your budget. Make sure to take into consideration the additional coverage provided by the rider.

• Step 4 - Pay premium:

  Proceed to pay the premium for the term insurance plan with the critical illness rider. You can choose from various payment frequencies, such as monthly, quarterly, semi-annual or annual.

Once the premium is paid, your term insurance plan with the critical illness rider will become active.

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