Does Life Insurance Cover Terminal Illness?
Close
Close

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Back

Does Life Insurance Cover Terminal Illness?

  • 15th Nov 2021
  • 82

Buy Life Insurance Now Does Life Insurance Cover Terminal Illness?

A terminal illness, often known as a life-limiting illness, is a condition that cannot be cured or adequately treated and is likely to cause the patient’s death. This end-stage disease usually refers to progressive diseases that worsen over time, such as cancer or advanced heart disease. Such diseases affect not only the physical health but also the emotional well-being of both the patient and their family. Frequent doctor consultations, hospital visits, medication, operations, and other expenses can cause a lot of financial strain. Even if you have life insurance, the impact of a terminal disease can be significant and has the potential to drain your savings considerably.

There are a lot of insurance companies that include terminal illness benefits in their policies. However, you can always add it as an extra rider to your base plan if they don’t. Since this option is available, an increasing number of people (particularly in metropolitan areas) are adding terminal illness insurance as a rider to their current life insurance plans because the additional coverage is a definite advantage.

Know What Is a Rider In Insurance Plan?

The question of what is rider in insurance plan can be confusing for some. Put simply, a rider is a supplement to the basic insurance that adds additional coverage and benefits to your existing policy. Life insurance companies provide a variety of riders that you can purchase for an additional premium cost (as per your requirements). A terminal illness insurance rider can also be added similarly.

Understand What Is Terminal Illness Insurance Cover?

A terminal illness cover is a life insurance plan with a terminal illness rider. It covers a specific list of life-threatening diseases as per the insurance company’s policy. Terminal illness insurance is identical to life insurance, except instead of a death benefit, you receive tax-free payments as benefits of riders in insurance. If the unexpected occurs and you are diagnosed with a terminal disease, a rider benefit availed under policy will grant a lump sum payment that you may use to cover any expenditures.

Benefits of Terminal Illness Rider

If the insured is given a survival period of 12 months, the terminal illness benefits include giving the life insurance lump sum amount early. It is generally offered as part of a life insurance policy at no additional cost. In addition to this guaranteed payout, terminal illness insurance has several other advantages.

  • Do Away with Additional Premium Costs for Increased Coverage
  • A life insurance policy with a terminal disease rider provides excellent coverage at affordable premium charges. If you have a terminal disease, it is usually better to cover a terminal illness with your base plan rather than a separate health coverage plan.

  • Treatment Costs
  • As part of the benefits of riders in insurance, policyholders can get at least 25% of the sum assured for treatment if they have a terminal disease.

  • Double Tax Advantages
  • Apart from providing financial security in a terminal illness or other unforeseen events, combining a terminal illness rider with a life insurance policy can give dual tax benefits. This is because the insurance premiums paid for both covers are eligible for exemption under sections 80C and 80D of the Income Tax Act, 1961.

It is always better to be safe than sorry, and this thought itself necessitates purchasing terminal illness insurance. Therefore, to protect your loved ones and yourself from the harsh realities of life, avail benefits of riders in insurance plans and get yourself the cover you need.

- A Consumer Education Initiative series by Kotak Life

Tags

Also read

  • What Is Staggered Payment Option Under Term Insurance Policy?

    Staggered payment meaning - It is a payout option under term plan where the nominees receives a portion of the sum assured as a lump sum and the remai...

    Read more
    • 13th Nov 2021
    • 81

    All About Life Insurance and How It Works?

    Here's the foundational knowledge you need to start your life insurance shopping process, including policy types, coverage period and know all the ben...

    Read more
    • 20th Oct 2021
    • 131

    Is Voluntary Life Insurance the Same as Basic Life Insurance?

    Voluntary life insurance is offered by employers to their employees, Basic life insurance is like a contractual agreement between you and your insurer...

    Read more

Related Plans

  • Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more
  • Kotak Premier Life Plan

    Kotak Premier Life Plan

    Kotak Premier Life Plan is a limited premium paying participating whole life plan, where you can choose to receive bonus payouts even after premium pa...

    Know more
  • Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your ...

    Know more