Term Insurance Plan for Organ Transplantation – Advantages & Benefits of Having a Term Plan With Critical Illness Cover


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Know all about the term insurance plan to cover organ transplantation costs in India and why you should buy one to secure your future financially.

Life is unpredictable indeed. One moment we’re healthy, hale and hearty. And the other, we’re unsure of what life can throw at us any minute. Our organs may stop working smoothly or we might be diagnosed with a critical illness or health condition. As distressing as it may sound, this is the harsh reality of life for which it helps to prepare in advance. This is why buying term insurance for organ transplantation is a wise choice, helping you be financially prepared for future uncertainties and the costs that they may accompany.

Here we discuss the need for organ transplantation, how term insurance can help in the process, and the benefits of buying a term insurance plan at the right time while you’re still in good shape.

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What is Organ Transplant?

Each organ of our body has a vital function to perform and any imbalance in the working of any one of them can create some serious problems in the body’s smooth functioning. For instance, if the kidneys’ role is to throw out waste from the body and if one or both the kidneys fail functioning, this essential role comes to a disturbing halt. Without waste excretion, all the toxic substances get deposited in the body and hamper its working, resulting in other critical ailments.

In the event of failure of normal organ functioning, and considering that each organ needs to keep running to make the entire body work, organ transplantation is considered as an option. The process has found immense popularity in India with a number of successful cases reported in a large number of people.

During the medical procedure of organ transplant, the specific organ of the body that is not functioning to its best capacity and requires replacement is taken from another body of a donor. The organ donor may be dead or sometimes even living (such as in the case of kidneys, where the organ donation of one kidney may be possible).

This healthy organ from the donor is then surgically transferred to the recipient patient’s body. However, note that for the procedure to be a success, both the donor and the patient (recipient) should display compatibility for organ transplant. This can be determined by running a few tests on both the parties involved before the procedure.

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How Can Term Insurance Help with Organ Transplantation?

Term life insurance provides financial coverage for the organ transplant procedure, considering that it can be immensely expensive and harsh on the patient’s pocket. The cost incurred on the transplant can be covered under the critical illness cover of the term life insurance policy.

The critical illness rider in term insurance is an add-on benefit to the base term insurance policy, which can be purchased at an additional nominal payment. The benefit of attaching this rider to the base plan is that it helps extend the financial coverage of term insurance. This means that in the unfortunate event of the policyholder being diagnosed with critical illness or life-threatening diseases, the critical illness cover of term insurance can help cover the expenses incurred on the treatment. The treatment of such conditions is generally longer with huge costs involved in the process. Hence, buying this cover helps.

Benefits of Buying the Critical Illness Cover for Organ Transplant

As stated above, the critical illness cover is designed to provide financial coverage for the treatment of longstanding critical ailments which may involve a huge expenditure as well. Organ transplant is one such expensive process, involving both pre- and post-hospitalization costs. Here are some benefits of buying the critical illness rider for organ transplantation:

1. Extended and affordable financial coverage:

One of the biggest advantages of buying the critical illness rider on term insurance is the extended financial coverage that it provides to the policyholder. Moreover, this extended coverage comes at a reasonably affordable price as well. The policyholder can comfortably purchase this add-on benefit over the base term insurance plan on payment of a minimal additional premium.

2. Payment made in a lump sum:

When it comes to spending money on critical illness treatments, there’s always a large amount of money required. The patient’s family would naturally prefer the amount to be handy so it can be paid as and when required. With the critical illness benefit, you can expect to receive the coverage amount under the policy in a lump sum so you can use it to your benefit at your convenience.

3. Tax deductions permissible:

Another good news for buyers of the critical illness rider benefit in term insurance! You are entitled tax benefits under Section 80D of the Income Tax Act, 1961, for the premium payable on the term insurance policy.

How is the Rider Benefit Payable to the Recipient Under Term Life Insurance Policy?

There are essentially 3 options available with the buyer of the critical illness rider benefit when it comes to receiving the coverage amount from the insurer:

  • The policyholder can opt for payment of rider benefit as a regular payment at a specific predetermined time, more like regular income to the recipient.
  • As stated earlier, the insurance company can pay out the entire coverage amount in a lump sum to the policyholder to be used at the latter’s convenience.
  • The insured can also opt for both lump sum and regular payouts from the insurer (helpful in case of heavy expenditure for organ transplant).

Wrapping Up
Organ transplant is a critical medical procedure involving a huge expenditure for the patient and their family in the treatment process. The term insurance policy helps via its critical illness cover rider, which can be purchased as an add-on benefit to the base plan at nominal premium rates. To look for the best term insurance plan with the maximum rider benefits, look up PayBima online and secure the financial future of your loved ones at the earliest.
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FAQs: Term Insurance Plan for Organ Transplantation

Is organ transplant covered by insurance?

Health insurance policies are therefore fairly explicit that they would cover the expense of surgery as well as any tests and procedures necessary to get the organ transplanted up to the sum insured in the event that the recipient needed an organ.

Does critical illness insurance cover organ transplants?

Life-threatening illnesses and disorders are covered by critical illness insurance, including major organ transplant. If you are diagnosed with significant organ failure or any other critical conditions, the insurance coverage could literally save your life because it offers a financial safety net.

Can kidney transplant patients take term insurance?

Is Organ Transplantation Covered by Term Insurance? Organ transplantation is covered under critical illness insurance under the term insurance plans provided by various insurance providers.

What does Waiting Period mean in Critical Illness Insurance?

The Waiting Period is the time frame during which you are not permitted to make an insurance claim. In other words, you have to wait a certain number of days before using any policy benefits. The waiting period's length varies from insurance to insurer.

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Oct 27, 2022
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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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