In the event of an untimely demise, one should have an appropriate plan to keep his/her family safe and prosperous. A Term Plan to ensure the financial stability, proper treatment and peace of mind in case of misfortune is a much-needed asset. Plans with critical illness benefits can provide a lump sum amount to the insured’s family if he/she is diagnosed with a critical illness. There are many plans for term insurance available in the market that provide such benefits.
There has been a surge in the number of individuals opting for plans with critical illness benefits. Illnesses such as paralysis, lung disease, heart attack, heart failure, and cancer are included in these plans. With the kind of surge, we are witnessing in these critical diseases, it’s always better to have a plan at hand.
Let us have a look at some of the essential reasons to take up Term Insurance for critical illness:
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Same Premium Amount
When you apply for insurance with critical illness benefits, then you will have to pay the same premium through the policy term. In simpler words, we can say that even if you are diagnosed with a critical illness, the premium amount will not increase. Upon diagnosis of a critical disease, insurance providers also waive any future premiums.
The premium you will pay for a term plan is entitled to tax benefits under section 80c of the Income Tax Act, 1961. The amount of up to INR 1.5 lakhs paid towards premium are deductible from your taxable income and gains received from a critical illness plan enjoy exemption under the Income Tax Act section 10(10D)
Medical Expenses Coverage
The cost of healthcare in India has been seeing an upward trend in recent times. One must have a secure vault for paying off such expenses in case of a critical illness diagnosis. Without an insurance plan, the expenses can cause devastating effects on your financial standing as the treatment of most critical illnesses runs into lakhs. With the insurer’s lump sum amount, you won’t have to worry about covering the expenses.
High Chances of Survival
We have already discussed that the insurance company’s lump sum amount to the insured person can be highly useful for covering the treatment expenses. In the absence of such a plan, most individuals find themselves avoiding proper treatment. This can lead to further complications of a critical illness ending up in an untimely death.
A burden of medical expenses affects the pocket, the mind, and, ultimately, overall health, so one must strive to avoid these issues and get proper insurance with critical illness benefits.
Most life insurance companies can provide a separate term plan, or they can be added as a ride to a base plan. However, a different critical benefit plan will have many terms and conditions, along with restrictions.
It is always better to go for a separate plan from a health insurance company to avoid complications. A Term Insurance for CI benefit plans can be brought as individual plans or as a family floater depending upon your need.
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