Term insurance policies are among the most sought-after insurance policies. Term plans are designed to ensure your loved ones get the financial coverage they need when you’re not around anymore. With the term plan’s coverage, your family will be able to maintain their financial stability. Along with this, the term insurance policy also allows you to increase the sum assured during the plans to help you improve the plan’s coverage based on your stage in life. However, your term policy would be beneficial only when you purchase a suitable policy.
Insurers have begun offering online term plans to help customers compare and purchase a suitable term policy. While you may have the best term insurance in India, if the specific situation you’re going through is not covered in your base term insurance coverage, you won’t be able to protect your loved ones during unfortunate events. However, with the help of term insurance add-ons, you can ensure that your loved ones get the protection they need.
What are Add-ons?
An add-on cover in life insurance helps increase the coverage that you can get through the policy. Add-ons are designed to help policyholders get insurance coverage for specific situations. This way, you can protect yourself from certain scenarios by including the appropriate add-ons in the plan. The inclusion of add-ons also helps you get additional tax benefits for the extra premium you pay for them.
Benefits of Including Add-ons to Your Term Insurance Policy
Purchasing term insurance with add-ons can be quite beneficial as you get to enhance your term policy’s coverage and get additional protection for certain situations. Including an add-on in your term insurance plan can be quite beneficial. Here are some advantages of including add-ons to your term plan:
- Improved coverage:
At the time of requirement, your insurance coverage amount may seem low. For instance, if you get diagnosed with a critical illness or are injured due to an accident, the medical expenses can rack up quite high. The entire ordeal can be quite draining emotionally and financially. Therefore, additional support during such events can be quite beneficial.
- Helpful for covering different scenarios:
Life is quite unpredictable, and you may never know what your future holds for you. Situations like critical illnesses, disabilities, accidents, etc., may occur out of nowhere. While they may not be covered under your basic term plan, you can be protected from these events by including add-ons. With the correct add-ons, you can get adequate coverage.
While you can include the add-ons to your term insurance at renewal, including them at the time of policy purchase will be a suitable option. Once you have included all the add-ons you need at the time of purchase, you will not have to keep track of the add-ons, premium amounts, etc.
- No separate document/medical checkup required:
You do not have to sign any additional documents or appear for medical checkups when you include an add-on. For instance, if you have included add-ons like the critical illness add-on or the waiver of premium rider, you will not have to appear for medical checkups. Instead, you only have to declare what riders you wish to add with your term insurance plan, and the premium amount will depend on the add-ons you choose.
- Special benefits:
Some add-ons may also include child education support and other specific benefits to the basic term insurance plan. This is quite beneficial if the policyholder is the sole earner of the family.
Some of the most commonly sought-after add-ons in term life insurance:
- Waiver of premium: This add-on will help you keep the policy active if you’re rendered disabled due to an unfortunate event or have been diagnosed with a terminal illness and cannot make the premium payments.
- Accidental death: This add-on will provide your loved ones with an additional sum assured if you pass away due to an accident.
- Critical illness: This add-on helps you deal with the medical expenses with a lump sum payout if you are diagnosed with a critical illness. You can focus your entire energy on recovering rather than worrying about the bills.
- Permanent and partial disability: Suppose you’re rendered permanently or partially disabled due to an unfortunate event. In that case, the rider will ensure your loved ones get the financial coverage for maintaining the financial stability of the house.
While including add-ons can help you get suitable coverage, they lead to a rise in the premium amount. Therefore, you must explore the different options available before purchasing the plan. Leading insurers like Tata AIA provide all the necessary information about the add-ons on their website to help customers purchase a suitable Tata AIA term plan.
Thus, if you’re planning to purchase term insurance plans, it would help if you included certain add-ons to the policy. Add-ons help you get insurance coverage for specific situations. Along with this, it may help you ensure you get the right coverage at an important time. However, you must carefully choose the add-ons, as they will raise the premium amount during the purchase plan.