What is Terminal Illness?
An Overview. A terminal illness is a rapidly advancing and incurable medical condition. When diagnosed with a terminal illness, there is no option but to resort to palliative care because the victim has a lowered life expectancy.
What is Terminal Illness Benefit?
Terminal illness benefit is one of the key features of some online term insurance plans. Under this, in case the policyholder is diagnosed with a terminal illness, an amount equal to 25% of the sum assured will be paid (subject to a maximum of 100 lakhs).
Once paid, the death benefit will be reduced by an amount equal. In addition, no more premiums are payable after the company accepts the terminal illness claim.
Why should you opt for the Terminal Illness Benefit?
The chances of a person acquiring a terminal illness are slim. However, if diagnosed, the policyholder will require medical care for as long as he is alive. The insured and his family will also require financial support in the months of unemployment that might follow the diagnosis. Further, the insured might need professional counseling to ease the burden of living with uncertainty.
In order to combat such situations, a policyholder shouldopt for the terminal illness benefit by paying an additional premium. Such a cover can help ease the finances in caseof a terminal illness.
What are the criteria to be eligible for Terminal Illness Benefit?
Based on your insurance provider and the product you choose, the conditions for payment of Terminal Illness Benefitscan vary. Here are a few indicative criteria:
Are Critical Illness Benefit and Terminal Illness Benefit the same?
No. Critical Illness Benefit is an insurance rider that you can buy along with your policy. It can fund the treatment for critical illnesses, which can in turn aid the policyholder on the road to recovery. However, the illnesses it covers are fixed and specified. It generally covers treatments for heart attack, some types of cancers, stroke, etc.
A Terminal Illness Benefit, on the other hand, is paid on diagnosis of the illness. It can help the family provide palliative treatments to the policyholder.
How to choose a cover?
While calculating the cover requirements, insurance buyers generally underestimate the costs related to terminal illness. Ensure that the sum insured you opt for covers you against the rising cost of healthcare. Remember that in the eventuality that one is diagnosed with a terminal illness, he will need money for:
Consult a financial planner to learn more about future value of these expenses.
"Be the CEO of your life"- Robin S. Sharma -
QUOTE OF THE DAY
A pre-existing medical condition should not be a deterrent for buying your family health insurance and securing their financial future. However, proper disclosure and some precautions ensure that in case if any unfortunate event, you have a smooth and hassle free experience.
Though both Individual and Group Health Insurance Plans provide similar coverage, they do differ in various aspects, such as cost and customisation.
It is important to have sufficient health insurance cover in order to meet medical emergencies. It is equally important to understand the provisions of any health insurance product that you may be holding, to avoid unpleasant surprises at the time of making a claim.
Health and critical illness are separate categories and each has its own place in a consumer’s insurance requirement. Here’s a simple guide to knowing how to choose between the two, or decide if you need both.
A health insurance policy is a critical piece in the overall puzzle of a family’s personal finances. A claim free year does not mean that the money goes down the drain. These covers should be treated as pure risk covers where the return is peace of mind of having secured family’s financial position.