Term insurance plans are the most popular plans in the insurance market and for good reason. Term plans provide a large coverage for a relatively small premium. Besides the sum assured, a policyholder can enhance the insurance protection with additional covers. One such advantageous cover is the critical illness cover. Generally, insurance benefit is only given out in case of death of the policyholder. However, with a critical illness cover, the policyholder gets the benefit in the form of cash payouts on being diagnosed with any critical illness. Treatment costs for critical illnesses are extremely expensive. By taking up a critical illness cover, a policyholder can receive cash payouts to cover the expenses incurred from the treatment. Hence critical illness insurance offers added financial protection against unforeseen illnesses. Still not convinced? Here are five reasons why your term insurance plan needs a critical illness cover:-
- Replacement Of Income
If you are diagnosed with a critical illness, it is likely that you will be indisposed and unable to work. Therefore, if you take up a term insurance plan with a critical insurance cover, you will receive a sum assured that will replace the lack of income. Hence, taking a critical insurance cover is crucial especially if your spouse is a homemaker.
- Added Tax Benefits
As it is, term insurance plans offer amazing tax benefits. On the other hand, you can also enjoy additional tax benefits by taking up a critical illness insurance cover. Under the section 80 C of the Income Tax Act, the premium paid towards a critical illness cover is also eligible for tax deductions. Moreover, the payouts received from both your term insurance as well as the critical illness cover are exempt from tax under the section 10(10D) of the Income Tax Act.
- Enhanced Security
A critical illness cover provides enhance protection for you and your loved ones. With a standalone term plan, you cannot avail any benefit when you are alive. However, with the critical illness cover, you can be assured of enhanced security when you need it the most.
- Focus on Recovery
By enhancing your term plan with a critical illness cover, you can focus on your recovery rather than worry about the medical treatment costs. With funds available at your disposal, you have the liberty of choosing the best possible treatment and focus of recovering faster without any financial liabilities.
- Availability Of Funds
With the additional payouts from the critical illness cover, you can undergo all kinds of medical treatments and procedures due to the availability of funds. The critical illness sum assured will be available to you as soon as your diagnosis, hence it can provide you with ready finance.