The main disadvantage of terminal illness cover is that once you raise a claim, it expires. Hence, you will not be able to raise a claim only a single time during the entire term of the policy.
What is Terminal Illness and What are the Diseases Listed Under It?
What is a Terminal Illness?
Terminal illness primarily refers to those medical conditions that cannot be cured. As a result, the life expectancy of the patient is reduced drastically. Diseases categorised as terminal illnesses are those that a doctor deems likely to cause the patient’s demise within the next 12 months.
There are several diseases listed as terminal illnesses in life insurance cover. So if you are suffering from it, you can opt for this cover.
List of Terminal Illnesses Covered in Term Insurance
1. Advanced Stages of CancerAdvanced-stage cancer implies that it has spread throughout the entire body. Hence, the chances of curing it at this stage are almost negligible. So, if a person reaches that stage, then they must purchase this cover for financial protection of their family.
2. Kidney DiseaseKidney diseases become incurable if they persist in the long term, since there is a gradual loss of kidney function over time. This leads to acute kidney failure as they can no longer work properly to meet the needs of the body. Thus, patients suffering from long term kidney related ailments should ideally opt for this insurance cover.
3. Heart DiseaseHeart failure is another terminal illness having no cure. There can be several conditions leading to heart failure such as diabetes, high blood pressure, valvular diseases, and so on. So, if you have any of them, you must take extra care of your health. In addition, you should also purchase a terminal illness cover to protect your family in your absence.
4. LeukaemiaThis is a variant of cancer of white blood cells that is almost incurable. It may sometimes become undetectable post treatment, but frequently reappears once again. So, it is essential to have a terminal illness cover for financial assistance in case it becomes difficult to arrange funds for the treatment.
5. Liver DiseaseCirrhosis can lead to chronic liver failure of a person. This marks the end stage of liver disease, after which it becomes impossible for a person to survive longer. So, people suffering from the same should opt for a terminal illness cover.
How are Terminal Illnesses Covered in a Term Plan?
Different insurance providers cover terminal illnesses in the following ways:
Some insurers cover terminal illnesses under the basic term insurance plan. So, individuals opting for them do not have to purchase an additional cover.
Many insurance companies provide a separate terminal illness cover free of cost. So you will not need to pay additional money to get one.
Few insurance providers might charge extra for terminal illness cover. Hence, you might have to pay additional money to purchase the same.
What is Terminal Illness Cover?
Why is Terminal Illness Cover Important?
Early PayoutAfter the demise of the insured person, the nominee can raise a claim for the sum assured. The insurance provider will process their request as soon as possible so that they do not have to wait too long for the claim amount.
Free-of-costYou usually do not need to pay any additional amount for terminal illness cover. Many insurers provide them for free along with the term insurance plan for people suffering from such fatal conditions.
Money for TreatmentIn case the treatments suggested during terminal illness are expensive and the policyholder does not have enough funds for it, they can use the sum assured amount. Insurers generally allow them to withdraw up to 25% of the sum assured for treatment.
Financial SupportThis cover can extend financial support to the policyholder to look after their family. This is generally after the diagnosis of the illness when they are not fit enough to go to work and earn money.
FAQs about Terminal Illness
The cover is ideal for people suffering from a terminal illness who want to financially secure their family members after their untimely demise.
The following are not included in a terminal illness cover:
1. Self-inflicted injuries
2. Congenital diseases
3. Not citing proper reasons to seek timely medical treatment
4. Being a part of criminal activities
5. Pre-existing medical conditions
Age of the insured person must be between 18 and 65 years. However, the maximum maturity age can be 70 years.
The essential documents required for this cover are as follows:
1. Original policy documents
2. ID and address proof of policyholder
3. Medical reports
4. Bank account details
5. Prescription of attending doctor
Important Guides related to Life Insurance
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.