Term insurance is a life insurance product whose purpose is to provide life coverage to you for a specific period, or “term.” If you purchase a term life insurance policy and pass away within the policy’s term, your family receives the sum assured. This helps to ensure your family’s financial security even if you aren’t there.
We now know how term life insurance safeguards your loved ones in the event of your passing. You wouldn’t just be afraid of dying, though.
There are additional dangers. Even if you are present with your family, your earnings may cease, and they may no longer be provided for. How? Assume you were involved in a significant accident. Despite your survival, you may have a permanent disability. Let’s understand how a long-term plan can help in such a situation.
What does “disability” mean in insurance policies?
First, let us understand what term insurance is and what a “disability policy” is.
A disability occurs when an individual cannot perform their regular activities due to a limitation in the functioning of a body part. The definition of disability differs depending on the insurance provider. However, the following are considered disabilities in general:
- loss of use of one or both hands or legs
- Blindness is a visual impairment in which you are unable to see.
- Hearing loss: inability to hear( loss in both ears of more than 90 decibels)
- Speech loss- the inability to speak as a result of vocal cord injury
It may be difficult for you to work and support yourself because of these disabilities. This unexpected loss of income can jeopardize your family’s financial stability since there is a loss of income as well as increased living expenses.
Term life insurance policies include the option to cover disabilities, which considers the seriousness of disabilities and how they affect you and your family.
How can term insurance provide disability coverage?
Term plans include the option of adding riders to your primary coverage. Rider broaden the coverage of your life or health insurance policy. There is a rider that protects you against disabilities. You can obtain disability coverage by selecting the Accidental Total and Permanent Disability rider when purchasing your term plan.
Term insurance is a simple protection plan. As a result, this plan provides adequate financial protection at a reasonable cost. When you add disability coverage to a term insurance policy, you can increase the benefit amount without significantly increasing the premium. It’s easy to find the premium cost for desired add-ons by evaluating the same on an online term insurance calculator.
What is the definition of an accidental total permanent disability rider?
By selecting this rider, you are eligible for an additional payment in the event that an accident renders you permanently disabled. The sum is distinct from the life insurance amount and adds to your existing sum assured.
You can use the money to pay for the costs associated with your disability. This can lighten the load on your family members. This will also ensure that you do not become a liability and that you can manage the money you receive.
What you should look like when seeking disability coverage in term insurance
Now that we’ve established what term insurance is and what disability coverage is, let’s look at how you should choose the right plan.
Disability cover must ensure that the basic sum that comes with the basic policy is still payable to your family if you pass away during the term. That is, the disability rider benefit does not result in the cancellation of the death benefit.
Premium Waiver Plans
If you are disabled due to an accident, the premium waiver feature allows all future premiums to be waived, which means you may not be required to pay for the remaining policy, and it can remain active. This alleviates the financial strain you or your family members may experience while paying premiums despite having no income.
Term life insurance provides comprehensive protection for you and your loved ones, regardless of the circumstances. You must pay an additional premium in addition to the base premium needed for the term policy in order to protect yourself against illnesses, accidents, and other similar risks. You can also get an estimate of the same with the help of the term insurance calculator. Finally, getting riders ensures you do not compromise and get an ideal value for your money.
Insurance is the subject matter of solicitation. Please carefully read the sales brochure or policy wording before making a purchase for more information on benefits, exclusions, limitations, terms, and conditions.
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