Term Plan gives an easy payable option for the policyholder as they can pay their premiums on regular basis or can pay in one time as per the policy.
About Term Insurance Plan
Term Insurance is basically a life insurance product which is offered by an insurance company to provide financial coverage to the policy holder for a specific time period. If the insure person dies during the policy term, and then the death benefit will be paid by the company to the recipient. Term insurance plans are very much desired in the life insurance market and the great benefit is that these plans offer higher sum assured amounts at a very low premium rates. A sum money or death benefit is paid to the heir or nominee in case the policyholder dies during the period for which the policyholder is insured. The policyholder can also get various options to get improved protection; there are some term plans available in the market those give protection to the policyholder as cash payouts on diagnosis of critical illness.
It is not that every customer is aware of is of the various riders that follow a term insurance plan and dependent on the imperatives of the insurance seeker, the policyholders are cheered to take critical illness riders with their existing term insurance policy instead of investigating in complete health insurance plans. Critical illness can improve a person’s finances in a remarkable way and they will then come without a sign so it is best to take a term plan without a critical illness benefit.
Here are five reasons that will help to understand the necessity of taking a term insurance plan with a critical illness benefit-
It is like a replacement of income
Though the premiums are similar
The insured will get double tax benefits
It also provides a large cover that also take care of both medical and day-to-day expenses
Also increases the chances of subsistence
So generally a term insurance plan with critical illness benefit can cover both the hospitalization bill and non-hospitalization expenses and also provide important cash flow during the recovery period. The critical illness benefit will also pay for the person who will go through certain medical conditions which are under the policy like heart attack, stroke, certain types and stages of cancer and other conditions. Many policies also cover for permanent disability as it is more likely to lose the source of stable income and not be able to pay future premiums.
Points to know before taking a critical illness cover
Every insured must have to read the list of all critical insurance coverage included in the policy also as various companies offer risk coverage for different critical illnesses.
The maximum term of a plan is about 30 years but the coverage continues even after accepting benefits on selected critical illness and the premium paid is also available for reduction under section 80C & 80D. Anyone can get the total benefit amount for Critical Illnesses covered under this above stated category which amount is totally payable and equal to the Critical illness cover that the policy holder chosen.
The whole amount is also guaranteed as selected under the plan is paid for either death or Total Permanent Disability of the Life Assured where the benefits are payable even after death or disability happens by an accident. This kind of policy is also beneficial as it does not come with minimum survival period and the benefit of the policy is paid right after the basis of the first diagnosis; the claims are also get fixed within 21 days after submitting of all the necessary documents. But it should be keep in mind that there are some Critical Illness Plans that don’t cover claims that arise within 90 days from the beginning of the policy and this clause is only suitable for new policies.