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5 min read
Updated on Dec 22, 2022
Being diagnosed with a critical illness can not only be an extremely difficult life event for an individual but also the beginning of a stressful period for their entire family. Some critical illnesses such as cancer and brain surgery have a high morbidity rate making the treatment very complex and the recovery a time taking process. This is why while buying a term insurance plan, many insurance providers and agents suggest taking a critical illness insurance cover as well.
Before you buy a critical illness insurance cover, you need to know how it works. When you buy an insurance policy with a critical illness cover, there is a list of critical illnesses that are mentioned in the policy. Upon the policyholder being diagnosed with any of these, they are offered a lump-sum amount. However, in some of the policies, the insurance companies may decide to make the payout after 30 days of survival from the date of the first diagnosis.
Here are some of the points to consider before opting for a critical illness plan.
The critical illness list that is covered by most term insurance is mentioned herein below:
Here are some of the benefits that you get when you buy a term plan with critical illness insurance.
Healthcare costs are at their peak in India. In one such scenario, getting admitted to the hospital for any illness can result in paying high medical bills. The expenses are endless as it includes tests, medication, surgery, and hospitalization. This is when a critical illness cover helps along with your term insurance plan. The lump sum amount you will receive can cover your medical bills.
When you buy term insurance with critical illness cover, there will be no change in the insurance premium amount for the entire tenure. Even if you are diagnosed with a critical illness during the tenure of your policy, the premium will not change.
It could be really unfortunate if the sole earning member of the family is diagnosed with a critical ailment and because of which he/she cannot work anymore. Well, during one such time, a critical illness cover can be of real help. This cover will act as a replacement for the lost income. The kind of money the policyholder will receive can be used for undergoing the required treatment.
Buying a term plan with a critical illness cover will enable you to get extra tax benefits. Term insurance plan is covered under Section 80C of the Income Tax Act, 1961; and critical illness cover is exempted under Section 80D of the Income Tax Act. From these aspects, the proceeds of a term insurance plan are exempted under Section 10(10D).
When you have undergone medical treatment and you have been asked to take rest for recovery, you need to take rest mentally as well. And with worries of paying bills and meeting ends cannot really let you be at peace. However, when you have term insurance with critical illness cover, you do not have to worry about the finances. You can rest assured that your medical bills will be paid.
Also Read: Best Critical Illness Plans in India Their Benefits and Features
Critical illness cover can be bought by anybody. However, if you fall in any of the below-mentioned categories, you must buy one.
Many people have illnesses that run in their family and at some point in their life, they also develop them. In one such case, it is wise to opt for a critical illness cover while buying a term insurance plan.
People usually start developing illnesses after 40. Therefore, if you are advancing towards 40, you should buy it.
If you are the only earning member of your family and have dependents on you, it is time you should get a critical illness cover along with your term plan.
Thanks to the convenience of buying policies online, you can now compare the term insurance plans from various insurance providers and select the one that suits your needs the best. For most buyers, taking a critical illness cover with their term life insurance plan is a very prudent decision.
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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