A terminal illness refers to an illness or infection that cannot be cured or adequately treated and it is resulting in the death of the patient within a duration of six months or less. Despite its treatment, there is absolute certainty about the death of the patient. A patient having a terminal illness is provided with palliative care as he/she has a lowered life expectancy.
People suffering from these types of diseases are referred to as ‘terminally ill’. Progressive diseases such as cancer or advanced heart disease are considered terminal illnesses.
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What is Terminal Illness Benefit?
Terminal Illness Benefit is usually available with term insurance plans as an inbuilt benefit or as a rider, depending on the policy terms. Terminal illness benefit is payable on diagnosis of the disease and it provides cover towards the cost of palliative treatments.
For instance, you choose Aegon Life iTerm Plan to get the life cover. In case of diagnosis of terminal illness, 25% of the base sum assured up to a maximum of Rs 100 Lacs is payable. The death benefit under this plan is then reduced by an amount equal to the terminal illness benefit paid. The company charges no premium after accepting the terminal illness claim.
Reasons to opt for Terminal Illness Benefit
Listed below are the key reasons that urge you to choose the terminal illness benefit.
- Cost of Treatment: The cost of treatment for terminal illness is expensive and it is tough for most families to afford. Not only this, but it also requires medical care for the duration the patient is alive which add-up to its cost. Having a terminal illness cover helps you pay for the medical cost associated with the disease and your family doesn’t have to face a situation of financial turmoil.
- Loss of Employment: If you are the only earning member in your family and in case, you are diagnosed with a terminal illness, your family will suffer a loss of a regular source of income and it becomes tough for them to manage their regular expenses. Having an adequate terminal illness cover helps you get some relief from the financial burden.
Having a terminal illness cover ensures financial security against the expenses incurred during the medical treatment and care provided to the patient.
Eligibility for Availing Terminal Illness Benefit
Here are the basic criteria to become eligible for terminal illness benefits.
- The life expectancy of the insured is less than months.
- The diagnosis of the terminal illness needs to be made during the term of the policy.
- The diagnosis of the disease needs to be affirmed by two medical practitioners, one is a specialist doctor and the other is a company physician.
Conditions for choosing terminal illness benefits may differ, depending on the terms specified under the policy chosen.
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How to Choose a Right Cover?
When looking to get a terminal illness benefit, it’s essential to choose an adequate cover. It needs to ensure that it provides cover against the expensive treatment & care involved.
- Palliative Treatment & Care: Palliative treatment for the diagnosis of terminal illness provides relief from pain and other symptoms of the disease. Under this treatment, the patient is provided with a support system that can help him/her live as actively as possible until death. All this treatment and care incur a huge cost. You need to make an estimate of the cost involved in the diagnosis of a terminal illness.
- Regular Household Expenses: On your diagnosis of terminal illness, your family has to face financial hardship, as regular expenses don’t stop. In this scenario, it becomes tough to meet financial expenses such as children’s education, debt repayment, and other daily expenses of the family. When you are looking to get a terminal illness cover, it’s imperative to add up the cost of household expenses as well, as it will help you get the right cover.
- Replacement of Income: In case, you are the sole bread-earning member of the family, your family has to face serious financial uncertainty upon the diagnosis of your terminal illness. You should add up an amount equal to the annual income of the family while calculating a terminal illness cover.
- Lower Premium Rates Ensure a Larger Sum: Talking about terminal illness, there is a limited number of people who are diagnosed with a terminal illness, and due to this terminal illness cover people with lower premium and offer a wide range of coverage.
Choosing the right terminal illness cover will provide a sigh of relief, as your family can meet the treatment cost plus manage to fulfill other financial obligations as well.
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Conclusion
A terminal illness benefit provides cover against the rising medical cost associated with its diagnosis & care. In the event of diagnosis of the disease, you don’t need to compromise with the quality treatment. You only need to choose an adequate cover, so it can provide coverage for all the costs incurred towards palliative care. Terminal illness is a rider with term insurance but it is clear that it’s one of the best services that’ll be beneficial for customers, in this short period of life the person who is affected with a terminal illness has only the option of palliative cover. Terminal illness is one of those riders, offered by every insurance company and you can only claim for terminal illness after being diagnosed with a terminal illness and you are going to leave 6 more months.