5 Common Health Issues That Can Be Covered Under Term Insurance

If there is anything that the recent pandemic taught us, it is that as individuals, we must take all measures to be prepared for medical emergencies. This involves taking active financial steps as well. By investing in a life insurance plan, particularly a term plan, you can ensure financial coverage for your loved ones even in your absence.

By making the right customisations to your term insurance plan, you can even get coverage for a variety of common health issues. As our lifestyles change and health concerns remain a prime priority, such coverage can prove to be a huge benefit for individuals and families across the country. Therefore, let us explore which common health issues can be covered under term insurance.

Before buying a term insurance plan to cover health issues, it might be worth revisiting the purpose term insurance typically serves. In its simplest form, term plans is a type of life insurance plan that offers coverage to the policyholder for a fixed period. In the event of the untimely death of the insured during this period, their beneficiaries receive a death benefit.

However, standard term insurance does not cover health conditions by default, so you may need to add specific riders for this benefit.

Term Insurance with Critical Illness Rider

While term insurance plans serve the primary purpose of providing financial coverage to your beneficiaries in the event of your demise, this coverage can also be enhanced by the addition of riders. Riders are add-ons that can be included in your life insurance plan to extend your coverage under specific circumstances. One such rider is the Critical Illness Rider. When incorporated into the term insurance plan, it extends coverage for the insured if they are diagnosed with a critical illness.

Depending on the insurer, the list of critical illnesses for which you can enhance your term insurance coverage can vary. However, there are a few common health issues that are covered by most term insurance plans, provided you opt for a Critical Illness rider. Typically, this rider pays out a lump sum on diagnosis, helping you manage treatment costs and loss of income during recovery.

Common Health Issues Covered by Term Insurance

Here are five of the most common health conditions and illnesses for which your term insurance coverage can be extended with a Critical Illness Rider:

• Diabetes: One of the most common lifestyle diseases today, diabetes has become prevalent due to our changing diets and reduced physical exercise. A Critical Illness Rider with your term insurance plan can help cover costs related to managing diabetes, such as medicine and doctor visits.

• Heart Conditions: Due to our stressful lifestyles, an increasing number of people are developing a variety of heart conditions. These include high blood pressure and coronary artery disease, which, in severe cases, can even result in heart attacks. If you opt for Critical Illness cover, your term insurance can help cover the costs of medication, surgeries, and even cardiac rehabilitation.

• Kidney-Related Diseases: One of the more common health issues, particularly in the elderly population, is kidney-related diseases. Term insurance plans with Critical Illness Riders can help provide financial assistance for the treatment of kidney-related diseases, including renal failure.

• Lung diseases: It is widely acknowledged that habits such as smoking can have an adverse impact on your respiratory system, particularly the lungs. However, due to pollution, even non-smokers can develop illnesses such as asthma and Chronic Obstructive Pulmonary Disease. With a Critical Illness Rider, your term insurance can help you cover the expenses related to treating such lung diseases.

• Cancer: Your term insurance, along with a medical rider like Critical Illness Benefit, can also help cover the costs of treatment for a serious illness like cancer. Up to a certain stage, this coverage can help cover costs for medicine, surgeries, tests, and various forms of treatment.

Always check the exact list of covered illnesses with your insurer, as this can vary.

Recommended Reading - Critical Illness Insurance

How to Choose the Right Critical Illness Rider

Adding a Critical Illness Rider to your term insurance plan can be a smart way to strengthen your financial safety net, but not all riders are the same. To make sure you get the most suitable cover for your needs, it’s important to compare a few key details before making a decision.

Here are some points to consider when choosing the right Critical Illness Rider:

• Check the List of Covered Illnesses: Not every Critical Illness Rider covers the same diseases. Some may include only a few major illnesses like cancer or heart attack, while others offer protection for a wider range of conditions such as kidney failure, stroke or organ transplants. Always read the policy document carefully to see exactly which illnesses are included.
• Understand the Payout Amount: Different insurers offer different payout amounts under their Critical Illness Riders. Some plans pay a lump sum equal to the sum assured, while others offer a fixed percentage or a pre-decided amount. Make sure the payout will be sufficient to cover high treatment costs and any loss of income during recovery.
• Compare Exclusions and Waiting Periods: Every rider comes with certain exclusions and waiting periods. Some illnesses might not be covered if diagnosed within a specific time after buying the plan. Also, pre-existing conditions are often excluded. Check these details upfront to avoid surprises at the time of claim.
• Match It to Your Health and Family History: When choosing a Critical Illness Rider, think about your own health risks and family medical history. For example, if there is a family history of heart disease or cancer, ensure that the rider you choose covers these conditions adequately. This helps you get real value from the extra premium you pay.

Conclusion

A life insurance plan, in its most basic form, can protect your life and secure the financial future of your loved ones. But term insurance, along with the benefit of riders such as Critical Illness, can provide additional security. Not only does it make for a more economical policy than traditional life insurance plans, but it also ensures that you are covered if you develop any of the common health issues listed above.

If you are looking for the ideal term insurance plan with the right riders and benefits, consider investing in the iSelect Smart360 Term Plan by Canara HSBC Life Insurance. This term insurance plan covers Death and Critical Illness and pays out benefits on death or diagnosis of a terminal illness, whichever occurs first. In addition, it offers various additional benefits such as the Accidental Death Rider and the Child Support Benefit Rider. It also offers several useful features such as return of premium and tax benefits on premiums paid.

Take the step today to secure your health and your family’s financial future with comprehensive term insurance cover.

Questions You Should Ask When Buying the Best Term Insurance Plan

1. Are you buying a term plan with a return of premium?

2. How much premium will you have to pay based on your age, habits, education, and monthly income?

3. What is the total number of benefits covered in the term insurance plan, do they include benefits you care about the most?

4. How can you save money on tax if you pay for a term life insurance plan?

5. Does the plan offer regular income options?

6. Can you change the coverage and premium in the future?

7. Is the claim considered valid if death occurs outside India?

8. Which kinds of death are not covered by a term insurance plan?

9. Can NRIs take a term insurance plan, and if yes, what are the conditions?

10. Does the term insurance plan have a cash value if you decide to cancel the policy?

11. Under what circumstances can a term insurance plan be cancelled?

12. Can you pay the premiums online or make electronic payments?

13. What happens to the term life insurance plan if the life assured starts smoking after purchasing the policy?