I Have A Health Insurance; Do I Need A Term Plan?

With inflation rising at an unprecedented rate, medical costs are one of the first to increase exponentially. Right from the cost of diagnosis to the cost of hospitalization, any major illness is expected to prove a significant drain on your finances.

This has resulted in increased importance of the health insurance plans, which now offer increased coverage for a range of illnesses and conditions. Health insurance plans are ideal for unexpected medical emergencies which can arise out of the blue. Whether it’s for yourself or your parents, spouse or children; it is necessary to be adequately prepared to deal with any kind of illness, especially financially. For such situations, health insurance is ideal since it helps reduce a significant portion of the financial burden that would otherwise fall on you.

However, having a health insurance plan does not negate the need for a term plan. A term insurance policy brings a range of benefits that significantly differ from the benefits offered by a health insurance policy. While there are different types of term plans, it is important for you to have both health insurance and a term plan in order to be adequately prepared for any unexpected emergencies in life.

With the iSelect Smart360 Term Plan, available on Canara HSBC Oriental Bank of Commerce, you get a customized plan that will cover both you and your spouse within the same policy. You can also choose from a range of premium payment options ranging from a short tenure of 5 to 10 years till the time you turn 60 years old.

There are several benefits offered by term insurance plans that are simply not available with a health insurance plan. Read on to learn more about how the two differ from each other, and why it is necessary for you to opt for a term plan even when you have a health insurance policy.

• Term plan acts as the overall financial coverage for the family and beneficiaries when the insured person is no longer around. A health insurance policy only protects the policyholder and their family members covered under the plan in case of any unexpected medical expenses.
• A term insurance policy ensures that the beneficiary receives the sum assured once the policyholder has passed away. However, with the iSelect Smart360 Term Plan, available on Canara HSBC Oriental Bank of Commerce, you can also get coverage through add-ons such as Accidental Death Benefit, Child Support Benefit, Accidental Total and even Permanent Disability Benefit. These go a long way in supplementing any health insurance policies you may have, and even allow you to increase your life cover with changing stages of your life.
• While there are several different types of term plans, the premiums charged on any of them are extremely less as compared to health insurance policies or any other insurance plans.
• The coverage offered by a term insurance policy is usually significantly longer as compared to any other kind of policy, including for health insurance. Since they offer blanket protection for the life of the policyholder, they are ideal for offering financial coverage to the beneficiaries and nominees once the policyholder is no longer around.
• While a health insurance policy only involves the policy covering the expenses incurred by the policyholder owing to medical problems caused to them or any of their nominees, a term insurance can also offer critical illness coverage if it has been opted for. This kind of coverage enables you to get the lump sum payout of the sum assured upon diagnosis of the critical illness. Different types of term plans offer different types of benefits based on the add-ons you have opted for. You may also opt for an Accidental Death Benefit, which ensures that your beneficiaries receive a guaranteed payout of the sum assured if your demise is caused owing to an accident.
• Term insurance policies can also offer a refund of the premiums paid during the term if the return of premium option was opted for while availing the insurance policy. This return of the premiums is tax free and enables you to avail benefits in terms of taxation along with receiving your funds back.

A term insurance policy is often a great investment instrument, since it offers blanket coverage against the death of the policyholder. With the iSelect Smart360 Term Plan, available on Canara HSBC Oriental Bank of Commerce, you also get to opt between multiple premium payment tenures. There are also multiple options to choose from in terms of your nominees receiving the sum assured.