15 JUL 2016
Complete protection with a critical illness & a term plan
Your family is a source of strength and inspiration for you. Their future is something that is of utmost importance to you, is it not? Would it not be wise to invest in something that will shield them from the uncertainties of the future?
Give them financial security.
How do you provide a financial shield for your family? You need to provide them with an umbrella that keeps them protected against the sun as well as the rains. That is exactly what term life coupled with a critical illness insurance looks like.
Term life insurance plans
A term life insurance is the purest form of insurance. Simply put, it is a life insurance policy that gives you only death benefits. For instance, you buy a term life insurance policy with a Sum Assured of Rs.1 cr with a term of 40 years. If you meet with an untimely demise anywhere during this period, your family will get the Sum Assured in full, either as a lump sum or as a monthly pay outs. This will ensure that they are not burdened by the financial liabilities.
To further strengthen your cover, you could opt for a few riders like:
- Waiver of Premium Rider – This rider will ensure that in the event of a disability due to an accident, your policy continues without you having to pay the premiums. This ensures that even though you are unable to pay premiums owing to your income earning capacity being hindered, your family's financial protection remains unaffected.
- Accidental Death Benefit Rider – This ensures that on account of your unfortunate demise, 100% of the rider Sum Assured is paid in addition to the basic Sum Assured. This enhances the base cover of the term plan.
- Accidental Total & Permanent Disability Rider – If you meet with an accident which results in you becoming permanently disabled, you get the rider sum assured and your policy still remains intact. This ensures that you get a financial cushion when in distress.
Critical illness plan
A critical illness plan provides a shield when there is loss of income owing to a pre-specified illness. Say you are diagnosed with a heart ailment that requires you to undergo a Coronary Artery Bypass Grafting (CABG) procedure that demands you to stay away from work for 2-3 months; you may face a period of forced lay-off.
This may severely hamper your family's financial make-up. Even if you have a mediclaim to cover your hospitalization expenses, other expenses like rent, home EMI's and children's school fees etc will not be taken care of. A critical illness plan ensures that all these are taken care of. If you have critical illness insurance, you get paid a lump sum payment on the diagnosis report of a medical practitioner. It does not require you to get hospitalized.
You can use this money in any manner that you may deem fit. No need of providing any supporting documents like bills, etc. You would be able to claim the Sum Assured just on the basis of a diagnosis report.
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