5 Reasons Why Your Term Plans Need Critical Illness Benefits

When you are interested in buying a life insurance plan, you should definitely opt for a term insurance plan. In term plans, you’d do well to add a critical illness coverage to it. Here are the top 5 reasons why your term plan should be accompanied by a critical illness plan

1. Income replacement

   A term plan with a critical illness cover can give you a ready income replacement for both your untimely demise as well as your indisposition due to a serious illness. In either case, your family would need a source of income to replace the one that you were bringing. This would especially be true when you spouse is a homemaker and does not contribute to the household financially.

2. Tax benefits

   A term plan coupled with a critical illness coverage gives you added tax benefits. You are covered by the term plan under Section 80C and the critical illness coverage under Section 80D of the Income Tax Act, 1961. The proceeds from both the policies are exempt from taxes under section 10(10D) of the same Act. This gives you the double benefit of tax-savings.

3. Increased security

   A term plan gives your family the security of an assured future. So does the critical illness coverage. With added protection, comes added security. With the kind of fast-paced lives that we seem to be leading, you may fall prey to a lifestyle related disease anytime sooner rather than later. To protect your family from the repercussions of the same, a term plan with a critical illness coverage is better than a standalone term plan.

4. Easy pace of recovery

   With a critical illness coverage at your disposal, you can have the luxury of recovering at your own pace. With funds available at your disposal, you can go for things like physiotherapy and rehabilitation programs to aid your recovery. Also, with most of your financial liabilities being taken care of, you can focus more on your recovery.

5. Ready availability of funds

   The critical illness cover is available to you on the basis of a diagnosis report. This provides you with funds if you have to undergo a procedure like a kidney transplant etc. Even if you have a mediclaim, there is no guarantee that you may be able to avail of cashless claims. In this situation, you may need to first put in your own money and then claim a reimbursement. Here, the critical illness Sum Assured, which is available, on a diagnosis alone, can provide you with ready finance.

It is clear from the above that you require a term plan with critical illness coverage like Edelweiss Tokio Life Total Secure+.