Here’s why you should opt for term insurance with critical illness benefits

Term insurance plans can help you to meet financial emergencies arising out of any unfortunate event. The term insurance plans also provide coverage for critical illnesses, but you have to opt for it as an additional benefit. This may come with extra cost.

Critical ailments often lead to heavy financial burden and add unprecedented pressure on individuals and family members. In such cases, the term insurance plans with critical illness riders can help you to meet expenses towards treatment of major health issues.

You should also opt for term insurance plans with critical illness riders to save more tax. The premium paid towards term insurance plans is tax exempt up to Rs 1.5 lakh under Section 80C, while the plans with health benefit riders are eligible for deductions under Section 80D.

What is a term plan with critical illness benefits?

The critical illness benefit serves as an added advantage to your term insurance policy where you get a lump sum payout if diagnosed with a critical illness. The insurers cover some specific illnesses with varying terms and coverage amounts. The illnesses covered by most insurers include cancer, heart attack, stroke, kidney failure and other severe diseases. However, adding a critical illness benefit to your term insurance may come with a higher premium amount.

Besides, a term insurance policy with critical illness benefits offers the family an added security in uncertain times. The plan helps them to manage the excessive costs of treating life-threatening diseases. This is an additional benefit that pays for the costs of treatment for certain diseases. The insurance coverage may help to pay for hospitalisation fees, ambulance fees, charges by doctors, medication costs, expenditure on medical tests, and any other related costs.

Why should you choose term insurance with critical illness cover?

Choosing a term insurance plan with critical illness benefits offers the following benefits:

Get entire coverage amount without deductions

In the event of being critically ill or disabled, the critical illness benefit provides you with a lump sum payout as previously agreed when you bought the term insurance. This is certainly better than policies that promise a coverage amount that is higher than what they actually provide after deductions.

Cover for exorbitant medical expenses

A term insurance plan with a health rider may help you pay for medical expenses such as hospitalisation or ambulance charges, expenditure on medicines, doctors’ fees, and other such costs. It brings down the financial burden in case of emergencies by also providing instant assistance.

Tax benefits

If you choose a term insurance plan with critical illness benefits, tax deductions up to Rs 75,000 can be claimed for premium paid under Section 80D of the I-T Act. You can also claim tax benefits under the overall limit of up to Rs 1.5 lakh per annum for total premium paid, as per Section 80C.