The ongoing global pandemic has brought a renewed focus and interest in being prepared for unforeseen and unexpected medical emergencies. This includes financial planning as well. Investing in a life insurance plan such as a term plan allows us to have assured financial coverage for our loved ones, even in our absence.
Selecting the correct customizations in a term insurance plan will allow you to have coverage against a variety of common health issues. As we grow older, our lifestyles change and health concerns become more prominent, making such coverage against health risks a huge benefit for individuals and families.
Let’s look at how and which common healthcare issues can be covered under a term insurance plan:
What is Term Insurance?
Before selecting a term insurance plan to cover your health issues, it might be a good idea to brush up on the purpose of term plans and what coverage they provide. Basically, term insurance plans offer coverage to the policyholder for a fixed time period. If the policyholder’s death occurs during the period while the policy is active, then the policyholder’s beneficiaries receive the death benefit.
Term Insurance with Critical Illness Rider
Although term insurance plans are intended to solely provide financial compensation to your beneficiaries in the event of your death, the coverage can be upgraded by adding riders. Riders are attachments or extensions that can be added to a life insurance plan in order to gain increased coverage under certain circumstances. One of the most common types of riders is the Critical Illness Benefit Rider. When this rider is attached to a term insurance plan, it increases coverage for the insured should he or she get diagnosed with a critical illness while the policy is active.
The list of critical illnesses that fall under the term of the rider and can be added to a term insurance plan can vary depending on the insurance agency. However, there are some common health issues that are typically covered by most term insurance plans, provided that you attach a critical illness rider.
Common Health Issues Covered by Term Insurance
Listed below are five common health issues and illnesses that can be covered under a term insurance plan attached with a critical illness rider:
Diabetes: A common lifestyle disease for the past couple of generations, diabetes is notoriously prominent due to our changing diets and decreased physical exercise. A critical illness rider attached to a term plan can help to manage the costs of medicines and doctor visits when diagnosed with diabetes.
Heart Conditions: Hectic schedules and stressful lifestyles are contributing factors that have led to a growing number of people developing various heart conditions. These include high blood pressure and coronary artery disease which in extreme cases can lead to a heart attack. By opting for a critical illness rider, a term plan can help to cover the expenses of medication, surgeries and also cardiac rehabilitation.
Kidney-Related Diseases: Kidney-related diseases are common among the elderly population. Term insurance plans equipped with critical illness riders can provide compensation for treatments of kidney-related illnesses such as renal failure.
Lung diseases: Bad habits such as smoking or vaping can severely impact your respiratory system, in particular – the lungs. However, as a result of growing pollution, even non-smokers are at the risk of developing illnesses like asthma and chronic obstructive pulmonary disease. By choosing a critical illness rider, a term plan can be used to provide coverage for the costs of treatment and medication for such lung diseases.
Cancer: A term insurance plan equipped with a medical rider such as critical illness benefit can enable you to manage the costs of treatment for a serious illness such as cancer. Although it is limited to a certain stage of cancer, it can provide coverage that helps cover the costs of medication, surgeries, tests and other related forms of treatment.
A life insurance plan, in its simplest form, can provide security for your life and for your loved ones, a financially secure future. But term insurance, equipped with a critical illness rider can provide coverage far beyond just financial security. The attachment of a critical illness rider also makes the policy more economical than traditional insurance plans as well as ensuring that you are not financially ruined should you develop any of the common health issues stated above.