Are you searching for a term plan? If yes, wouldn’t you prefer a plan that gives you comprehensive and total protection over a policy that just gives your family members financial coverage against the risk of your death? You could secure your family’s future by paying a little bit extra.
The question is, should you?
A term plan with a critical illness cover
By buying a term plan that includes a critical illness cover as an accelerated benefit, you can get the benefit of a comprehensive plan. How does this policy operate? In case of a term plan, you pay a particular premium in exchange for which the insurer guarantees your family the full Sum Assured in the event of your untimely demise. A critical illness plan, in exchange for premiums paid, gives you the full Sum Assured in the event of occurrence of a critical illness. A comprehensive term plan does both. You are covered with a Base Sum Assured and also a critical illness benefit. If you avail the critical illness cover in the event of a pre-listed critical illness, the policy will continue with the Death benefit reduced by the extent of the Critical Illness Sum Assured paid.
Rajiv is a brand manager in an FMCG company and is 35 years old. Rajiv and his wife Reena have a three year old son Aryan. His father Kishore is retired. Rajiv wants to be well prepared for all unforeseen circumstances in life. For this, he chooses a comprehensive term plan with Base Sum Assured of Rs. 1 crore and critical illness sum assured of Rs.10 lacs for a cover till 75 years of age. Let’s suppose he pays an annual premium* of Rs. 19,656 (combined premium including taxes and cess).
A few years later Rajiv is diagnosed with one of the predefined critical Illnesses. Rs. 10 lac is paid as a lump sum and the policy continues with reduced Sum Assured of Rs. 90 lacs. With this amount, Rajiv keeps on making payments on his utility bills, children’s school fees, father’s medicines etc.
The subsequent premiums are proportionately reduced to Rs. 11,130. After fighting with the illness for 2 years, Rajiv unfortunately passes away. On his death, his family gets a lump sum death benefit of Rs. 90 lacs and the Policy terminates.
Thus, for approximately Rs.8500/- more per annum, Rajiv was able to give total financial security to his family and himself.
Advantages of such a plan
This kind of a plan is beneficial in the following scenarios
Death after a long illness
As in the above example, when you are fighting with an illness for a long time, you need funds to take care of routine payments like utility bills, children’s fees etc. Even after having the funds and the right treatment, you may meet with an unfortunate demise. In such a case, your family also needs financial security. This plan does both.
Financial protection for transplants
In case you require an organ transplant, the costs of the same can be a lot with out-of-pocket costs like your own transportation or that of the donor. If the organ is being donated posthumously, the transplant has to be done immediately. In such cases, you may need funds to get admitted to a hospital of your choice or where the organ location is. Even if you are covered by a medi-claim, you may not be able to avail cashless facility for the same. Although the term plan coupled with a critical care plan allows you to avail a lump-sum amount.
Taking care of your parents and kids
If you are the breadwinner of your family and have the responsibility of tending to your aged parents and young kids, both of whom are unable to add to the income of the family, an unfortunate event can burden your spouse immensely. This event can be in the form of a critical illness or your unfortunate demise.
So if you are hunting for a term plan, your search would end very soon. Browse this space for a very special product; a comprehensive term plan that gives you TOTAL SECURITY + PROTECTION.
* Premium for non-tobacco consumer healthy male.
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