Most people associate insurance with protection. All insurance companies that sell term insurance advertise how their products are carefully crafted to provide financial support to your loved ones when they need it the most. Death is synonymous with the loss of a loved one. The feeling of pain due to sudden death is aggravated by the sudden loss of income of the policyholder.
However, is a term insurance cover enough to cover the hardships caused by sudden disability due to an accident or illness? Will only a term policy work or should you top it up with some rider benefits to help you tide over unforeseen difficulties? You must first check whether your term plan policy includes disability cover as most of the online policies do not cover cases of partial or temporary physical disability.
Some term plans purchased offline through agents offer more than just the death payout in your absence due to death. They take care of sudden financial needs due to accidents or serious diseases or similar incidents. However, in order to avail payouts for nominees, term insurance companies ensure that the policyholders suffer from total physical disability, thus, making them completely incapacitated to work or earn for their families. Is.
define disability
Not all disabilities are necessarily due to accidents. Some disabilities may also result from serious or incurable diseases. The idea behind this is that a severe disorder becomes life-threatening immediately, thus, being restricted from routine, day-to-day activities. These diseases include:
- cancer
- heart problem
- kidney disorder
- Alzheimer’s disease
- third degree burns
- liver/lung failure stage 3
Regardless of the benefits associated with the payout and the conditions that trigger this benefit, insurance companies can deny your disability cover claim on a number of grounds. Insurers ensure that policyholders or their nominees cannot claim this cover if the former develops a disability due to the following reasons.
- a pre-existing disease or condition
- suicide attempt
- intentionally hurting oneself
- engaging in self-destructive activities regardless of mental health condition
- Injury or accident due to the use of alcohol, drugs or any other substance
- Disability due to war, rebellion etc.
- How do you get disability rider benefits?
Most term insurance companies allow their policyholders to choose how they want to receive disability rider benefits. Usually, companies give three options to choose from
- Full benefit payment in lump sum
- The benefit payout is a regular income during the specified policy term.
- The benefit will be paid for the period till the life of the policyholder’s spouse.
Policyholders can also choose to receive benefit payouts in the form of a lump sum amount and a combination of regular income for a pre-determined income term, such as 10 years.
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