Are you searching for a term plan? If yes, would you prefer a plan that gives you comprehensive and total protection than a policy that just gives your family members financial coverage against the risk of your death? No doubt you are securing your family’s future with a basic term plan, but by paying a little bit extra, you can secure your financial health also. What should you do?
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 buy a comprehensive term plan. How does this policy operate? In 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 critical illness. A comprehensive term plan like Edelweiss Tokio Life Total Secure+ does both. You are covered with a Base Sum Assured and also a critical illness benefit. If you avail of 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. Lets 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, Sunil was able to give himself along with his family total financial security.
* Premium for non-tobacco consumer healthy male.