Why Do You Need Terminal Illness Cover with Term Life Insurance?

By Pardeep Garg
  | Published: 03 August 2021

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Health issues that lead to hospitalization can prove to be really heavy on your pocket. Unplanned medical expenses can easily ruin all your financial plans and derail your savings. If you don’t possess adequate insurance coverage, medical treatment can cost you a fortune. Hence, term life insurance is greatly needed in today’s time. A terminal illness cover with a term insurance plan is like a cherry on the top as you can be assured of financial assistance if you are diagnosed with any critical illness like lung and heart disease. The treatment of terminal illnesses is very expensive, and it requires a longer period to recover. So going for a term insurance plan that provides terminal illness cover is always be a better choice. 

Term Life Insurance Plan requires the policyholder to regularly pay premiums for a certain time duration or as a one-time payment. Death benefits (an assured sum of money) are provided if the policy owner dies during the insurance period. In addition, the term insurance plan with terminal illness cover offers a cash payout at the time of diagnosis of critical illness. 

Advantages of Terminal Illness Cover with Term Life Insurance  

Term life insurance plans are easily available for healthy individuals who don’t have any kind of health issues. However, acquiring term life insurance can be a bit complicated for individuals who declare that they are suffering from a terminal illness.

The term life insurance plan with a terminal illness cover provides financial assurance to the policyholder’s family in case of his/her untimely demise and even assure assistance if any medical condition arises out of the blue. If you are planning to take up term life insurance with terminal illness cover, you must make sure that the insurance plan provides you with maximum benefits. Given below are some of the advantages of term life insurance with terminal illness cover. 

  • Safeguards from life-threatening medical issues - The term life insurance plan provides financial help to the policyholder’s family for the treatment of a terminal illness. However, if the policyholder possesses a normal term life insurance without a terminal illness cover, then the family will not be entitled to claim any insurance benefits in case the policyholder dies of a terminal illness. The person must figure out if he has any chance of acquiring a terminal illness by going through his family history. If yes, he should immediately opt for a terminal illness cover with term life insurance. This will ensure all the financial assistance if the person undergoes treatment for the terminal disease or in case of his demise due to the terminal illness. 
  • Acts as Income Replacement - There are numerous benefits of taking a terminal illness cover along with term life insurance. While a normal term Insurance will meet the expenses of general treatment or hospitalization, a terminal illness cover with term life insurance will provide all the financial assistance that might creep up due to the terminal illness, including routine medical payments and expenses. Some term insurance policies also offer payment of premium if you have outlived the ensured period. You will receive the premium amount that you have paid at maturity.
  • Gives a large cover that compensates medical expenses – Usually, the treatment of critical illness is very expensive. A lung or heart disease can cost you all your life savings since the treatment continues for a long duration and each level of treatment requires a huge sum of money. Terminal illness cover provides the financial help that may be required during such treatments. Moreover, the cover also ensures compensation for all medical expenses incurred during the treatment phase. The policyholder’s family is also ensured of financial help in case of his/her demise during treatment or during the time of diagnosis. Hence, holding a terminal illness cover with term life insurance is very important for the person who has chances of acquiring any terminal illness.
  • Increases the chance of survival - A very peculiar thing about terminal illness is that it appears out of the blue and during such times, it becomes very difficult for people to arrange expenses for the treatment in a very short span of time. A terminal illness cover provides coverage for all the expenses incurred, beginning from the diagnosis till the treatment, so that the person can undergo treatment immediately after the diagnosis of the illness. This increases the survival probability of the policyholder. Moreover, the person and his family are assured that they are going to get all the financial support without having to hamper their own life savings. This also builds up the confidence of the patient and the family to tackle the situation.

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Important Points to Remember While Selecting a Terminal Illness Cover  

While selecting a terminal illness cover with term life insurance, an individual should consider some important points like different terminal illnesses covered, the benefits provided in the policy, etc. Here are a few important things to consider before going for a terminal illness cover.

  • Risk Coverage - Various companies provide risk coverage against critical illnesses. Do comprehensive research of various risk coverage provided by the companies before selecting one.
  • List of Critical Illnesses covered - Before buying a terminal illness cover, make sure to go through the list of all critical illnesses covered in the policy and select the one that provides coverage for a large number of illnesses. This ensures protection against most terminal illnesses.
  • Benefits of coverage – Usually, most companies offer full monetary benefits against a critical illness. The amount payable is equal to the terminal illness cover that the policy owner chooses. The individual must go through the critical illness coverage amount before selecting the policy. For example - If an individual chooses a term life insurance of 50 lakh with terminal illness coverage of 15 lakh, then the individual can claim 15 lakh upfront at the time of diagnosis and treatment of critical illness. The upfront amount will be reduced from the total coverage while the term life insurance is still in place.
  • Susceptibility to Critical Illness - It is worth noting to analyze the type of lifestyle an individual has and what kind of critical illness he is susceptible to. Moreover, the person can analyze the family history and make a note on which type of illness he may acquire. Once done, search for the term life insurance that provides coverage to such terminal illnesses before selecting a policy.

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Conclusion 

It will be very wise to take up a terminal illness cover with term life insurance as it gives multiple benefits and financial assistance at the time of medical emergencies. These plans have transparency in the claim process as the important conditions are mentioned at the time of buying the policy. Moreover, the terminal illness cover ensures the payment of all the medical and treatment expenses so that you don’t have to worry about spending any money during time of medical emergencies. Choosing a terminal illness cover requires a bit of research, but it will help you get the best benefits out of the policy according to your needs.

Related Link -

How is Terminal Illness different from Critical illness ?

5 Reasons Why Your Term Plan Needs a Critical Illness Benefits