Why you should include critical illness cover in your term plan?

While you go that extra mile to make life easier for your loved ones at home, you do tend to forget yourself in the process. With daily work and perhaps a modern and sedentary lifestyle, your body is easily prone to various diseases, which can lead to serious health problems in the future. Therefore, you should not ignore the early symptoms of any irregularity in your health or any hereditary symptoms related to a critical illness.

Opt for regular health check-ups so that you can prevent or minimize the onset of a critical illness. Being diagnosed by a critical illness will not only take a toll on your health but also your savings and income-earning capability. In such a situation, a term plan is one of the best options to secure you against any unfortunate event. If you are planning to buy a term insurance plan, it is essential to make sure that you have a term insurance plan that also provides coverage for critical illnesses.

Below are the benefits attached to a term plan with critical illness coverage.

• Acts as an income replacement: Critical illness coverage in a term plan provides added benefits. While you may be having a regular health insurance plan that will cover your hospitalization expenses. A critical illness plan will provide a lump sum amount on diagnosis and this money can be utilized to cover everything from the costs of medicines to day-to-day expenditure.
• Security against life-threatening diseases: Critical illnesses account for more than 60% of total deaths in India. In the case of diagnosis, term insurance with critical illness coverage can act as a cushion to cover both hospitalization expenses and other expenses that will arise due to loss of income.
• Double Tax benefits: The premium paid is eligible for tax deduction under both Section 80C and 80D.
• Higher sum assured with lower premium rates: Unlike regular health insurance plans, which charge varied premiums after particular intervals, a term plan with a critical illness coverage offers higher cover at lower premium rates. This is because the average cost involved in treating critical illnesses is as high as Rs 20 Lacs. Also, the frequency of the policyholder suffering from a critical illness is fairly less as compared to that of regular illnesses covered by a health insurance plan.

A term plan with critical illness cover is highly beneficial. These plans can help you and your loved ones overcome adversities by preparing you against unforeseen mishaps that can occur in the future.

Chirag Iyer - BFSI Enthusiast

Chirag is a writer and an avid reader who loves to drink coffee! His other interests include boxing, karate, and singing.