Term Insurance is the most affordable yet most convenient life insurance plan. However, Critical Illness, the add-on cover, has always been a topic of discussion, as some believe it’s an added cost, while others think it offers financial security. Thus, today, we will uncover whether it is worth the cost or a waste of money. We will also discover how to purchase the best Critical Illness cover.
What is Critical Illness Term Insurance?
Usually, life insurance companies offer several riders, and critical illness is one of them. You receive a lump sum for treatment and recovery expenses when you get diagnosed with the diseases listed in the plan. This plan covers a set of serious diseases and severe medical conditions, including:
- Severe stage Cancer
- Chronic Lung Disease
- Chronic Liver disease
- Severe Coma
- Angioplasty
- Heart Surgery
- Myocardial Infarction
- Open Chest CABG
- Kidney failure
- Cardiomyopathy
- Loss of Speech
- Apallic syndrome
- Brain Surgery
- Major Organ or Bone Marrow Transplant
- Medullary Cystic Disease
- Third-degree Burns (Severe Burns)
- Loss of Limbs
- Motor Neurone Disease with Permanent Symptoms
- Alzheimer
- Parkinson’s Disease
- Aplastic Anaemia
- Muscular Dystrophy
- Poliomyelitis
- Systemic lupus Eryth with Renal Involvement
The list of covered conditions can vary depending on the insurer. Always review the terms and conditions of your policy to understand the exact coverage provided.
Why You Should Choose Term Insurance with a Critical Illness Rider?
Below are some reasons that will help you understand the importance of this rider in your plan.
- Extra Cover
Treating critical conditions is very expensive. This rider provides financial support, giving you a sense of financial security for yourself and your family.
- Income Replacement
If the policyholder is unable to work due to illness, the coverage can replace income and help cover expenses.
- Consistent Premium
Even after you are diagnosed with the disease, the premium remains the same throughout the plan. If your plan includes a Premium Waiver option, you may not need to pay premiums after diagnosis.
- Double Tax Benefits
Under Section 80C of the Income Tax Act 1961, you can enjoy tax deductions on a term insurance plan. Adding a rider to your term plan provides an additional tax benefit under Section 80D.
How to Use Term Plan Calculator to Purchase a Critical Illness Rider?
Let’s examine how you can use the term plan calculator to buy a plan that best suits your needs.
- Research and Compare Plans
First, you need to do detailed research and compare critical illness riders from different insurers. Ensure the plan is affordable yet offers extensive coverage and note down the diseases covered, waiting periods, exclusions, etc.
- Calculate the Premium
Enter the basic details, like age, sum assured, and any other riders you want to add to the plan. The term plan calculator will then generate premium estimates.
- Choose the Plan
Now, choose the plan you prefer, check the terms and conditions, and review it again before making a payment.
Conclusion
Critical Illness cover offers financial security in unfortunate events and allows your family to proceed with treatment without any financial worries. Thus, if you are a sole earner, an individual with a history of critical illness, or someone above 40, you must consider getting this coverage.
This post was published on August 14, 2024 7:10 pm