- Understand Terminal Illness Cover
- Terminal Illness Benefits
- Terminal vs Critical Illnesses
A boy-in-squares bagging escapades of switching streets in groove & sensing musical airy-notes from 6 1". Under wayed nyctophile sketching the walls of life from the panorama of anime.
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Sharan Gurve has spent over 9 years in the insurance and finance industries to gather end-to-end knowledge in health and term insurance. His in-house skill development programs and interactive workshops have worked wonders in our B2C domain.
Updated on Apr 08, 2025 5 min read
Terminal Illness Coverage in Term Insurance
Terminal Illness is a life-threatening disease that cannot be fully treated and leads to the patient’s death. Diseases like cancer, motor neurone disease (MND), advanced heart disease, neurological diseases, lung disease, etc. fall into the category of terminal illnesses.
In case there's a higher chance of you getting terminally ill in future, and your family's medical history shows that multiple members are affected due to a critical illness, then the terminal illness insurance cover is highly recommended for you. You can add this add-on rider to your base plan or purchase a term plan with an in-built terminal illness benefit and claim an early payout of death benefit if you are diagnosed with one of the listed terminal illnesses.
What is a Terminal Illness Benefit?
It becomes expensive to get treatment for terminal illnesses and may lead to the patient's family being in a financial crisis. So, it's necessary to buy a term insurance policy with a terminal illness benefit or a rider where the insured person can claim the death benefit while they're still alive.
Still, their nominee gets the death benefit after their demise minus the terminal illness claim amount. Some insurance providers offer up to 25% of the life cover to policyholders in case their expectancy is assumed to be less than 12 months only.
Terminal Illness in Term Insurance: FAQs
1. What is considered a terminal illness for insurance?
Terminal illness is a condition that cannot be treated and likely lead to someone death.
2. What is the terminal illness benefit of term insurance?
The terminal illness benefit gives you the flexibility to claim a tax-free lump sum amount from life cover in case of the diagnosis of a terminal illness.
3. How does terminal illness benefit help us?
The terminal illness benefit rider goes into effect if your medical reports state that your life expectancy is fewer than 12 to 24 months. After the diagnosis, it pays a lump sum amount from your sum assured.
4. What are examples of terminal illnesses?
The terminal illness benefit rider provides protection against life-threatening diseases like cancer, motor neurone disease (MND), advanced heart disease, neurological diseases, lung disease, Etc.
5. Why should I buy a terminal illness cover?
If you have a family history of critical or terminal illnesses, work in conditions that can lead to a life-threatening disease or have a recurring health issue then you can consider buying a term plan with a terminal illness benefit or rider.
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Written By: Sahil Singh Kathait
A boy-in-squares bagging escapades of switching streets in groove & sensing musical airy-notes from 6 1". Under wayed nyctophile sketching the walls of life from the panorama of anime.
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