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Reasons Your Term Insurance Plan Needs a Critical Illness Benefit

June 30, 2017 1816
Life is full of unexpected events. You may contract a critical illness at any stage of your life. During such times, it becomes difficult to meet the exorbitant medical expenses. Besides, if you are the breadwinner of the family due to the illness you may not be able to work anymore, which may lead to financial difficulties. In order to receive coverage against such events, it is recommended you avail of a term plan with a critical illness benefit.

Term plans with critical illness benefit provide a lump sum amount in case you are diagnosed with one of the illnesses mentioned in the predetermined list of the insurance policy. This generally includes illnesses such as cancer, paralysis, heart attack, heart failure, and lung diseases, besides many others. Though critical illness cover may be bought as a standalone plan, it is generally available as a rider with a term plan.
Many individuals opt for a term insurance plan with critical illness rider due to the numerous benefits such a plan has to offer. Following are five reasons for purchasing a term plan with critical illness benefit.
1. Premium amount remains the same
Once you have applied for a term insurance with critical illness benefit, the premium remains the same throughout the term of the policy. This means that the premium does not increase once you have been diagnosed with a critical illness. Moreover, insurance providers waive off any future premiums upon diagnosis of a critical illness.
2. Tax benefits
The premiums paid towards a term plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Thus the amount paid towards premiums, up to INR 1.5 lakh, is deductible from your taxable income. Besides, the benefits received from this plan are exempt under the Income Tax Act’s Section 10 (10D). 
3. Coverage of medical expenses
Healthcare costs in India are increasing by the day. Given the ever-increasing cost of medical expenses, it only becomes necessary that you are adequately covered through an insurance plan in order to avoid burning a hole in your pocket. Opting for a critical illness rider with your insurance policy helps you cover all the medical expenses. Besides, the lump sum amount provided by the insurer may be used to cover daily expenses as well.
4. Increased chances of survival
In the absence of an insurance policy, you will be financially burdened with high medical costs. Quite often, individuals with critical illnesses do not undergo treatment due to lack of funds. With no appropriate treatment, the chances of death increase. However, with a critical benefit cover in place, you may receive timely funds to undergo the necessary treatment, thus increasing the chances of survival.
The main advantage of 3D Life and Life Long Protection Options is that all future premiums are waived off upon diagnosis of any critical illness. Some of the critical illnesses covered under these options include cancer of specified severity, major surgery of aorta, open heart replacement or repair of heart valves, open-chest CABG, end-stage liver disease, end-stage lung disease, loss of limbs, major head trauma, benign brain tumor, third degree burns, and permanent paralysis of the limbs, besides many others.
You may, therefore, consider a term plan with a critical illness rider as it covers you during times of difficulty. You may avail of such a plan through the Internet to enjoy a high degree of convenience. Opting for any of the online term insurance riders like critical illness offers additional protection and secures your future in case of any untoward illness.

*Disclaimer:  This article is with respect to HDFC Life Online Term Insurance – Click 2 Protect Plus 3D

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HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.

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