What Is Terminal Illness cover in Term Insurance?

Written by : Knowledge Centre Team

2025-12-25

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8 minutes read

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While you run that additional mile to make life more comfortable for your loved ones or family at home, you tend to neglect yourself in this process. With regular work and possibly a contemporary and inactive lifestyle, your body is readily predisposed to numerous complications, which can drive you towards pressing health difficulties in the future.

You must never overlook the initial signs of any abnormality in your health or any genetic symptoms correlated to a terminal illness. Buying a term insurance with terminal illness cover will help you secure your life while protecting your loved ones financially.

Why is a Terminal Illness Cover Required when you are Buying a Term Insurance Plan?

When a person listens to anything associated with an ailment or hospitalisation, medical insurance coverage is the initial thing that crosses their mind. Unexpected medical emergencies can worsen the financial status of a person. If you do not have sufficient insurance coverage, medical treatment of severe or terminal illnesses can burn a hole in your pocket and future savings.

Certain loopholes in your health insurance can easily be filled when you opt for a terminal illness cover along with your term insurance plan. The treatment cost of terminal illnesses like liver and heart diseases or cancer is remarkably high. An only shot of medication in specific kinds of cancer can require a lot of money, and successful treatment demands several doses.

Hence, it might not be wrong to state that the expenses of terminal diseases require lakhs of rupees. Usually, the medical insurance policies only pay for the hospitalisation expenses and not the medications or expenses incurred on medicines.

Consequently, it becomes important for people to look for other avenues than a regular health insurance plan. Opting for a terminal illness cover with a term insurance plan can be one such avenue that can take care of your entire medical expenses along with providing mortality benefits.

4 Benefits of Taking Terminal Illness Cover with a Term Insurance

Term insurance plans are usually readily purchased for individuals who are fit and do not suffer from any prior health complications or diseases. However, if you comprehend that you previously suffered from a terminal illness, purchasing a term insurance cover may be a bit more complicated. Many insurance providers in present times hold stringent terms and conditions concerning term life insurance for people suffering from a terminal illness.

Many people opt for a health insurance policy that can assist them at the time of any medical emergency. However, health insurance might prove to be incompetent in a vast number of circumstances. After looking at all these challenges, many insurance providers presented people with an option of terminal illness coverage that they can opt for with their existing term insurance policy.

This term insurance plan with terminal illness coverage not only safeguards your family in case of the untimely demise of the policyholder but further protects them with all medical contingencies arising abruptly. If you plan to take a term insurance plan with terminal illness coverage, you must ensure that the term plan you choose provides you with maximum benefits.

Here are 4 benefits of taking a terminal illness cover with a term insurance plan:

1. Serves as an income replacement

Terminal illness cover taken along with a term plan presents supplemented advantages. You might be holding a normal medical insurance policy that will meet your hospital and health expenses.

A terminal illness plan with a term plan will present you with protection against any unfortunate event and further cover the cost of routine medical payments along with the expense of medicines. Also, some term plans offer return of premium option. In case you outlive the policy, you will receive all the premiums you have paid throughout the policy term at maturity.

Learn more about return of premium.

2. Protection against life-threatening medical conditions

Terminal illnesses account for over 60 percent of cumulative deaths in the country. If you simply have a term insurance plan without terminal illness cover, your family will not be entitled to receive a claim in case of your untimely demise.

Hence, if you think you might suffer from a terminal illness due to past family medical history or recently diagnosed with a terminal illness, you must immediately take a terminal illness cover as a top-up with your existing term insurance plan.

This terminal illness cover can provide you and your loved ones with a financial cushion at the time of medical emergency or loss of income that arises in case of ill health or demise of the policyholder.

3. Offers dual tax advantages

Apart from receiving monetary protection in case of a terminal illness or any other unfortunate event, a terminal illness cover taken with a term insurance policy can provide you with dual tax advantages and insurance premium paid for this terminal illness cover and a term insurance policy will be exempted in both section 80C and section 80D of the Income Tax Act, 1961.

4. Higher sum guaranteed with more inexpensive premium charges

Unlike conventional medical insurance policies, which impose different premium rates after distinct periods, a term insurance policy with terminal illness cover extends a higher coverage amount at the most economical premium rates.

This is because the mediocre expense included in handling terminal illnesses is as huge as Rs 20 Lacs. In addition to this, the number of policyholders encountering a terminal illness is reasonably more limited as contrasted to that of normal diseases incorporated by a medical insurance plan.

It is always best to take a terminal illness cover with a term plan instead of a medical insurance plan if you are suffering from any terminal illness.

Term insurance with terminal illness coverage is extremely advantageous. These insurance plans can assist you, and your loved ones surmount difficulties by outfitting you against unexpected accidents that can happen in the future.

If you are looking for term insurance with terminal illness cover, you must undoubtedly choose iSelect Smart360 Term Plan by Canara HSBC. This term insurance plan provides extensive illness and mortality coverage at an affordable premium to ensure that you always remain guarded against unfortunate events.

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Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.