Term Insurance Policy for Disabled People

People with disability can buy term life insurance. It can be a smart option for anyone looking to secure a financial future. Despite its many benefits, a large section of the population in our country, especially those with disabilities don’t avail of term insurance plan because most people assume that they have to be perfectly healthy to be able to avail of it or they don’t want to pay higher premiums.

However, life insurance companies evaluate different types of disabilities and process the term plan application accordingly.
 

Can a Disabled Person Buy a Term Insurance Policy?

Yes, disabled people are eligible to buy term insurance plans.

The plan is crucial for individuals with disabilities as it helps secure their family’s future and the financial requirements of a disabled person are more complex, owing to the necessary funds needed for medical check-ups, bills, and more. Therefore, having adequate financial resources is vital for individuals with disabilities to lead a comfortable life.

Benefits of Term Insurance for a Disabled Person
 

• Financial Security for the Family: A term insurance plan provides a lump sum payment to the nominee if you pass away. It provides financial security to your family or dependents relying on your income.
  There are a few life insurance policies that offer a steady income benefit in case the policyholder survives the policy term. The steady income benefit offers the policyholder peace of mind and financial security during times of need.
  iSelect Smart360 Term Plan offers life cover, steady income benefit, an option to add a spouse to the same policy, coverage against 40 listed critical illnesses, and an option to block your premium rate for 5 years during which you can increase the base sum assured by up to 100%.
• Financial Support for Medical Expenses: Living with a disability can be expensive, as it often involves regular visits to the hospital for assessment and treatment of the condition. These expenses add up quickly. Term insurance for disabled persons can help the insured meet these costs if the base plan is supplemented by additional riders.
• Tax Benefits: Disabled persons can enjoy tax savings by buying term insurance under Section 80C of the Income Tax Act. The premium is deductible up to ₹1.5 lakhs. Additionally, the death benefits received by the nominee or beneficiary of the disabled person are also not taxable, owing to the provisions of section 10 (10D) of the Income Tax Act.

Claim Process for Term Insurance of Disabled Individuals

It is important to process the claim for term insurance for the physically disabled to ensure timely intervention in times of medical emergencies. Here is a step-by-step guide you can follow:

• Inform the Insurer: Notify your provider about the claim as soon as possible. Early intimation helps ensure a smooth claim process.
• Gather and Submit the Required Documents: The nominee or claimant must submit the following documents:
  • Death certificate of the policyholder
  • Original policy document
  • Proof of identity and address of the claimant
  • Medical records (if required for verification)
  • Disability certificate (if applicable)
• Medical and Policy Review: The insurer will need to review the medical history of the policyholder as well as the terms of the actual insurance policy. The insurer may consider any exclusions based on pre-existing conditions at this time.
• Claim Assessment and Verification: Once the documents are submitted, the insurer will evaluate the claim regarding the conditions of the policy. The insurer may request additional documents if required.
• Claim Settlement and Payout:  After verification takes place, the amount of money to be paid (sum assured) will be submitted to the nominee's registered bank account. If any discrepancies arise, the insurer will communicate with the nominee for clarification.
  To avoid any unnecessary delays, it is advisable to have all the policies and the documents associated with medical history well-organised and accessible for a hassle-free experience.

Conclusion

A term insurance for physically disabled is an essential financial tool for individuals with disabilities, ensuring a secure future for their families. While selecting a policy, you should consider the levels of coverage, premiums, and add-ons, if any. Canara HSBC Life Insurance offers plans tailored to meet the needs of people with disabilities, ensuring peace of mind and financial stability.