The Coronavirus (COVID-19) pandemic has made people realize that life can change in a fraction of a second. Due to COVID-19, millions of people around the world have lost their lives, and that too within a span of a few months. Besides this, people’s earnings have been affected to a great extent. Just imagine, in the case of any untoward incident with you, how your family members will cope with all the finances. Will they be able to live a financially independent life and fulfill their aspirations? Therefore, you must invest in an online term plan as soon as possible to secure the economic future of your loved ones.
If you are not sure about the term insurance plan meaning, then let us explain it to you in an easy way. A term plan is a simple and pure type of life insurance policy that provides much-needed financial security to the policyholder’s family in case of his or her demise during the policy period. Some important term insurance benefits are a high sum assured and cost-effective premium.
Today, the cost of healthcare is on the rise. So, it is advisable to invest in a term insurance plan that can provide the benefits of health insurance. Well, you may not believe this, but it is true. Many insurers in India have started offering health-related riders that increase the scope of your term insurance benefits. With this, you can get health coverage under a term plan. It helps you to reduce the burden of buying a separate health insurance policy and managing it. Here, you can purchase a critical illness rider along with your term plan to reap the benefits of health coverage.
Why you should buy a critical illness rider
The hectic work life, poor lifestyle habits, and improper diet have made people more prone to life-threatening ailments. Besides this, the onset of the COVID-19 pandemic has made life unpredictable. You never know when an illness can affect you. The cost of hospitalization can take a heavy toll on your pocket. So, it becomes necessary to buy a critical illness rider along with your term plan. The primary role of this rider is to help you and your family cover the medical cost. So, if you are diagnosed with a life-threatening disease, the insurer pays you a lump sum that you can utilize for your medical treatment.
Reasons to purchase a critical illness rider
You can consider investing in this rider because:
- It covers major life-threatening conditions like cancer, heart attack, stroke, kidney failure, chronic lung disease, chronic liver disease, loss of limbs, and major burns, among other problems
- It provides you with dual tax benefits. The premiums that you pay towards your term plan and critical illness rider are tax-exempt under Section 80C and 80D of the Income Tax Act, 1961
- It acts as an income replacement tool; for instance, if you have to quit your job for your medical treatment, you can use the lump-sum received from the insurer for your treatment and take care of the household costs
A critical illness rider with a online term plan can prove handy. It can prevent you from facing financial hardships that can occur due to high medical expenses. Besides this, the lump sum that you will receive on the diagnosis of any medical ailment will help you to get your treatment done in an effective manner. Before you purchase the critical illness rider, you need to understand the various inclusions and exclusions, so that there is no misunderstanding in the future.