Terminal Illness Rider in Term Insurance Plan – Advanced Details | PayBima

Term Insurance Plan with Terminal Illness Rider

These diseases do not come unknowingly and when a chronic disease is diagnosed, it adds a lot of burden to the affected people. This is where chronic illness riders in long term insurance can help. Read the blog to find out more.

The last illness a person experiences can be devastating. It means that the disease is incurable and the patient has a short life expectancy. In such difficult times, financial problems are also increased, when more money needs to be spent on the treatment and care of the patient. Because of the word insurance, a large part of this cost can be paid to the patient and his family. And to help them out, many insurers offer additional financial protection through chronic illness riders.

Here we share a detailed guide that explains everything you need to know about the chronic illness rider long term insurance.

What is a Term Insurance Plan?

First, let’s start by understanding the meaning of the word insurance. Term insurance is designed to provide financial support to the beneficiary/nominee(s) of the insured in the event of the death of the insured. It is a cash death benefit provided by the insurance to the bereaved family of the deceased insured with the objective of providing financial support during this difficult time.

You can browse the internet for several options for long term insurance offered by several insurance companies. After going through all their benefits, you can choose the best insurance policy in India. Of course, buying term insurance online is always easy but you can also choose to go to your chosen insurance company to get coverage before buying the policy.

Also, term insurance can be purchased both as an individual policy (for one person) or as group insurance for people living together (usually family members). You now have an online platform to calculate what you need based on your insurance needs through the Insurance Calculator. It is easily available online and allows you to do your own home assessment before purchasing an insurance plan and insurance policy.

What is Terminal Illness?

As mentioned earlier, your long term insurance can provide you with additional benefits as a terminally ill patient for additional payments. Let’s see what is a chronic illness in long term insurance.

Terminal illness refers to any illness or health condition where the patient’s life expectancy is only 6-12 months. Serious diseases like this can be called terminal diseases which means that they are incurable and can lead to death. Here are some examples of chronic diseases to make it easier to understand:

  • Dementia
  • Lung disease
  • Advanced stages of cancer
  • Tumors
  • Alzheimer’s disease
  • Parkinson’s disease
  • Severe heart disease, including stokes and heart disease
  • Type 2 diabetes mellitus

If a person is diagnosed with any of the above, chronic disease insurance coverage can help provide financial support to the patient and their family members by paying the costs involved in the treatment.

Terminal Illness vs. Critical Illness

Are chronic diseases and serious diseases the same or are there any differences? Let’s find out.

All these types of diseases are dangerous; however, there is little difference in the use of both, meaning that they cannot and should not be used interchangeably.

When we say serious illness, it means serious illness, disease, or injury to any part of the body, such as kidney failure, Bypass Surgery, organ transplant, Multiple Sclerosis, etc.

However, when it comes to incurable diseases, it is said when doctors confirm that the patient’s illness or health condition is incurable and may eventually kill them within one year.

Symptoms of Terminal Illness

Now let’s learn about the symptoms of chronic diseases which help to know if the disease is incurable.

  • The pain is severe and often persistent
  • So tired
  • Nausea and vomiting
  • Constipation
  • Anxiety
  • Depression
  • Breathing problems

What is the Terminal Illness Rider in Term Insurance?

All insurance riders are intended to provide additional coverage or protection to the insured over and above what is provided in the basic policy. These riders can be purchased separately at the time of purchasing the insurance policy or when renewing the policy.

The terminally ill provides financial assistance to those who are healthy and their families in case of any terminal illness. In fact, the terminal illness benefit means that 100% of the sum assured under the rider is paid to the insured. Note that this benefit is available only if the insured person is diagnosed with a terminal illness at the time the policy is issued.

Also note that when the insurance company pays the benefit of the money provided by the passenger for a terminal illness to a person who is confirmed to be alive, he will no longer be entitled to receive treatment under the passenger. In addition, your insurer may expect you to inform them of the chronic illness within three months of the diagnosis, failure of the insurance may not be eligible to receive benefits.

Benefits of the Terminal Illness Rider

Here are some benefits of purchasing chronic health care in addition to your long term insurance:

  1. Lump Sum Payment: This is the most important benefit for life assurance if diagnosed with a terminal illness. The insurance provider immediately pays the sum assured to the person to cover the cost of the treatment.
  2. Financial aid: The sum assured by the insurance provides adequate financial support to the insured and their family members during these difficult times.
  3. Increased Spread: Basic term insurance does not cover the cost of treatment for chronic diseases. However, with the addition of a chronic disease rider to the plan, the insured stands to receive extended coverage that includes the cost of treatment for the disease, which is often very high in India.
  4. Tax Exemption: The benefit of the rider is also exempt from tax under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Know More: Is Critical Illness Cover Included in Term Insurance Plans?


Chronic illness can cause significant physical and financial hardship for the person diagnosed with the disease and their loved ones. Buying a chronic illness rider in long term insurance can help alleviate that problem a lot.

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