Will term insurance cover me for health-related expenses too?

These days, there are no age ranges or criteria for diagnosing chronic conditions and critical illnesses. With an overwhelming amount of uncertainty, it is essential to secure one’s life. If an individual has dependents or is the primary financial supporter of a household, it is vital to secure their life. This is exactly what term insurance is and does.

Term insurance gives a person the financial cushion to rely on in unforeseen circumstances. It ensures that without the breadwinner; the family does not land in any money problems. Instead, the nominee can take the sum assured and live a life with no economic difficulties.

Term insurance provides an individual with a life cover for a specific time. In case of their demise within that period, the insurance company provides the sum assured to the nominee. It secures the financial condition of the loved ones in their absence. The benefit of opting for term insurance is that a person can get a huge cover at an affordable premium. Based on an individual’s needs, one can use the term insurance premium calculator to figure out the premium and sum covered.

There may be unexpected events that may suddenly disrupt one’s life (like an unexpected illness). In such an event, an individual cannot rely on basic term insurance to cover their medical expenses. However, there are ‘riders’ that an individual can add to their term plan to protect themselves from such circumstances.

Term insurance and riders

When you buy term insurance, you can add ‘riders’, which are like add-on benefits clubbed to your base insurance. The benefits of the policy increase when the primary policy has linked add-on riders. The benefits do come with additional premiums. You can use online term insurance premium calculators to know the additional amount of premium you have to pay for the rider. There are several types of riders one can opt for based on their needs. For medical expenses, usually, there are no ‘riders’ in term insurance that specifically bear the medical expenses. However, there is a critical illness rider that one can club with their primary term insurance.

Critical illness rider

Unpredictable times have made it more important to safeguard one’s health. Critical illness rider is an add-on that has become more of a necessity than an option. It provides the financial support needed to the insurer when diagnosed with a life-threatening disease. After the diagnosis, it covers the rehabilitation cost of the insured. The most common illnesses that are usually covered in term insurance are heart attack and cancer.

Diagnosis of such illnesses can be mentally, financially, physically, and emotionally scarring. It takes a huge toll on the person diagnosed and their family as well. With an additional critical illness rider clubbed to the primary term insurance, it can relieve one of the financial aspects. A policyholder of a critical illness rider receives a sum on the diagnosis of the disease mentioned in their policy. Usually, the insurance company also covers the hospitalisation and non-hospitalisation expenses. The amount of expenses covered depends on the terms and conditions of the policy. Hence, when you buy a term insurance, it is important to read the fine print and all the details.

Critical illnesses are conditions that usually require huge funds for treatments. Most times, the sum required is so huge that people have to mortgage their houses or take loans. A critical illness cover is a great way to safeguard an individual from such circumstances. Also, with finances available immediately, one can quickly get the proper diagnosis and treatment required for their condition.

When an individual purchases a term policy, there are a few factors they must check regarding a critical illness rider. Ensure to carefully read the different illnesses covered in the policy. Also, read the benefits the policyholder can get after the diagnosis of the illness. Critical illness rider does not cover all medical expenses, but it is a great add-on to a term insurance plan. It enhances the quality of the term plan and provides a financial safety net. What term insurance does is prepare one for the worst. A critical illness rider strengthens one further by providing additional protection to the policyholder.