Which Insurance Plans Give Terminal Illness Benefit?

Terminal illness is a disease or condition where the person may not live for more. A terminally ill person may live for days, weeks, months or maybe years depending on the treatment. So if you don’t want your loved ones to face any financial problems while you are terminally ill, you can purchase a life insurance plan. There are many top term life insurance companies in India such as Max Life Insurance, ICICI Prudential Life Insurance and HDFC Life Insurance that provide such benefits. Let’s know about them here.

Top Life Insurance Plan with Terminal Illness Benefit

Max Life Whole Life Super

Buy the Max Life Whole Life Super Plan to ensure that financial needs are fulfilled at any lifecycle stage. Under this policy, your sum insured will rise systematically, plus there are guaranteed bonuses up to the age of 100 years. The following are the benefits of this savings plan.

1. Terminal Illness Benefit: In case you are diagnosed with any terminal illness during the policy term, 50% of the Guaranteed Maturity Sum Assured shall be payable to you immediately.
2. Maturity Benefit: Surviving the policy term means you will get a guaranteed payout plus the applicable bonuses as the maturity benefit.
3. Death Benefit: In case of your unfortunate death, your nominee will receive a guaranteed payout plus the applicable bonuses as the death benefit and the policy will terminate.
4. Bonus Payout: You can choose to receive the annual cash bonus announced by Max Life Insurance in three different ways as per your needs.
5. Tax Benefit: Save on tax payments by claiming tax deductions Under Section 80C and 10(10D) of the Income Tax Act (ITA), 1961.

The minimum guaranteed sum assured at maturity is INR 50,000 as per the premium limits; and the maximum guaranteed maturity sum assured is subject to underwriting.

Note:– The terminal illness benefit shall be payable to the insured only once a policy year, provided the policy is in force for at least 10 years. This benefit shall be admissible on earlier of death, surrender or maturity.

ICICI Prudential iProtect Smart Joint Life Insurance plan

This is a term life insurance plan that provides life coverage to your loved ones in case of an unfortunate event like death or terminal illness. Also there’s an optional cover for critical illnesses if you want. You just need to choose a suitable plan for yourself from the following:-

1. Life – Under this plan, you will get death and terminal illness benefit
2. Life Plus – Here, you’ll get death benefit, terminal illness benefit plus accidental death benefit
3. Life & Health -The insured will be covered against death, terminal illness and critical illness under this plan.
4. All in One – If you want all benefits under one plan, choose All in One plan where death benefit, terminal illness benefit, critical illness benefit and accident death benefit are available to the insured.

Also, under the ICICI Pru iProtect Smart Plan, you can increase the level of protection at different life stages such as marriage, childbirth and legal adoption without any medical examination.

Future Generali Express Term Life Plan

Future Generali Express Term Life Plan is a non-linked non-participating life insurance plan that provides financial coverage in situations like death, terminal illness and critical illness. So, if you are concerned about terminal illness, you should purchase this policy. If you purchase this policy and are suffering from the terminal illness and likely to die in 6 months, you will receive the terminal illness benefit under your Future Generali Express Term Life Plan. The minimum sum assured of this plan is INR 25 lakh while the maximum sum assured is subject to the underwriting by the company.

Note – The terminal illness benefit shall be applicable only if it is diagnosed and confirmed by the medical practitioners registered with the Indian Medical Association (IMA) and approved by the company. Because under this policy, the company reserves the right for an independent assessment of the life assured condition. And the cost of such expenses shall be borne by the company only.

Canara HSBC OBC iSelect Star Term Plan

This is a non-linked non-participating pure risk premium term life insurance plan that provides life coverage to the insured person. And you can also cover your spouse under Canara HSBC OBC iSelect Star Term Plan. You can claim the terminal illness benefit under this plan if you are diagnosed during the policy term. The following are your coverage options under this term life insurance plan.

1. Life – Sum Assured on Death will be payable to the life assured or nominee in case of terminal illness diagnosis or death, whichever is earlier.
2. Life with Return of Premium – Here also, the sum assured on death will be payable to the life assured or nominee in case of terminal illness diagnosis or death, whichever occurs first. But if the life assured outlives the policy term, the total paid premiums shall be payable.
3. Life Plus – Under this coverage option, you will get a sum assured on death if you are diagnosed with terminal illness or die, whichever happens first. And if you stay alive till maturity, the total paid premiums shall be refunded. But you can continue the Canara HSBC OBC iSelect Star Term Plan coverage even after the maturity if you want and avail the same death benefit and terminal illness benefit when the risk arises. And if you survive till the age of 99 years, a sum assured shall be payable.

Shriram Life Online Term Plan

Shriram Life Online Term Plan is a non-linked non-participating pure online term insurance plan that provides life cover up to INR 1 Crore at an affordable premium of INR 7,343 p.a. Under this plan, you will get terminal Illness benefit and waiver of premium on total and permanent disability due to accident. And you can choose the payout from the following:-

1. Lump Sum: In case of death or on diagnosis of terminal illness
2. Monthly Income: A 1% of sum assured on death or on diagnosis of terminal illness shall be payable up to the end of the policy term or 10 years, whichever is later
3. Lump Sum + Monthly Income: Get 50% of sum assured as a lump sum and 0.5% of the sum assured as monthly income in case of death or upon diagnosis of terminal illness.

After selecting your payout option, choose an optional cover from the following for an extra coverage for your loved ones:-

1. Critical Illness: In this, you’ll receive a lump sum amount on diagnosis of any covered critical illnesses, while the base policy coverage continues
2. Accidental Death Benefit: Under this optional cover, the nominee will get an additional lump sum amount on death of the life assured provided the death is due to an accident. And this amount will be in addition to your base policy benefit.

Shriram Life Online Term Plan can be purchased online at any time from anywhere at your convenience. The policy sum insured ranges from INR 25 lakh to INR 10 Crore.