Cancer Care Insurance – how it works and what are its benefits

The first thing that one must do once they start earning is to buy insurance. For a secure future and to safeguard your finances one must create an insurance package. This package needs to have all the insurance policies that one can need. The four basic types of policies that your insurance package must contain are a life insurance policy, a health insurance policy, a critical illness policy and a personal accident insurance policy.

People are often confused between whether they should opt for a life insurance policy or a health insurance plan. The answer is that you need both. Both, a life insurance policy and a health insurance plan have unique functions and one simply can’t be replaced with the other.

Here’s how one is different from the other and why you need both.

What is a life insurance policy?

The need and importance of life insurance for everyone is undeniable. A good life insurance plan is an investment as well as a security. Here’s how a life insurance policy works, you pay a set premium for the duration of your policy. On maturity you receive a lump sum amount, which is the money you’ve paid as premium in case of term plans you, don’t receive a pay out on maturity. Term policies come at a low premium but in case of the death of the policyholder the nominee receives a sizeable amount in the form of a claim. Your life insurance plan needs to be tailored to the needs of your family. While buying a plan one needs to take into consideration the current income, loans if any, the expenses etc. of a family. There are a few different types of life insurance plans you can choose from, they are term insurance, whole life insurance, ULIPs and child life insurance plans, to name just a few.

What is a health insurance plan?

A good health insurance plan is the need of the hour for every family. Healthcare rates all over the country are soaring. Even simple procedures, tests and diagnostics can make quite a dent in your monthly budgets. Health insurance policies make sure that you don’t have to worry about finances when you or a loved one is in need of health care. Choosing the proper health insurance plan for your family is crucial. Health insurance plans take care of your medical expenses. To maximise the benefit of a health insurance plan one can purchase riders, which are like add-ons. There is a critical illness insurance that takes care of your medical expenses in case you contract a serious illness like cancer, heart disease or organ failure. Other riders include accidental death rider and permanent disability rider.

Customize your health insurance policy with accidental & disability riders

An insurance policy is a way to safeguard your family financially, in case of an unforeseen death, disease or accident. There is no right age for one to by insurance; the younger you start the better it is. Every person you have steady source of income, a family to take care of and a future to plan for should create an insurance package for themselves and their families. The four basic types of insurance policies that one needs to have in that insurance package are, a life insurance policy, in case of the death of the policyholder this policy will help your family by giving them monetary support. A health insurance policy, which will help take care of any medical bills or treatments, which can be very expensive. Personal accident policies that will help supplement the income of the family in case the policyholder meets with an accident. And a critical illness policy that will help take care of the treatment costs for illnesses like cancer, heart diseases and major organ failure.

Insurance riders are a great way to customize your insurance policy. A rider is an insurance add-on that provides the policyholder with additional benefits apart from those offered by the term policy. It is used to enhance the cover of the policy. You can add multiple riders to a health insurance or life insurance policy. But the two most important riders are the Accidental Death Rider and the Permanent Disability Rider. There are three other riders too, they are, the Critical Illness Rider, the Premium Waiver Rider and the Income Benefit Rider.

These riders together help you maximize the benefit of your insurance policy. Here’s what you need to know about the two most important insurance riders and how they work.

1

.      Accidental Death Rider: If you purchase this rider and the policy holder dies due to an accident, his or her nominee will receive and addition amount of money above the sum that has been assured to them in their term policy. For example, if your term policy assures you Rs.50 lacs and you’ve purchase an accidental death rider, your nominee will receive a sum of Rs.60 lacs in case you die in an accident.

2

.      Accidental Disability Rider:  If an accident leaves you partially or permanently disabled, then this accidental disability rider helps to substitute your income which you’ll lose due to your disability. With this rider, you get a percentage of the assured sum for a fixed period (five or ten years). Usually, this rider is offered along with the accidental death rider.

A rider can be the difference between financial disaster and stability, buy paying a little extra you can save your family a lot of trouble.

Difference between Life Insurance and Health Insurance

The first thing that one must do once they start earning is to buy insurance. For a secure future and to safeguard your finances one must create an insurance package. This package needs to have all the insurance policies that one can need. The four basic types of policies that your insurance package must contain are a life insurance policy, a health insurance policy, a critical illness policy and a personal accident insurance policy.

People are often confused between whether they should opt for a life insurance policy or a health insurance plan. The answer is that you need both. Both, a life insurance policy and a health insurance plan have unique functions and one simply can’t be replaced with the other.

Here’s how one is different from the other and why you need both.

What is a life insurance policy?

The need and importance of life insurance for everyone is undeniable. A good life insurance plan is an investment as well as a security. Here’s how a life insurance policy works, you pay a set premium for the duration of your policy. On maturity you receive a lump sum amount, which is the money you’ve paid as premium in case of term plans you, don’t receive a pay out on maturity. Term policies come at a low premium but in case of the death of the policyholder the nominee receives a sizable amount in the form of a claim. Your life insurance plan needs to be tailored to the needs of your family. While buying a plan one needs to take into consideration the current income, loans if any, the expenses etc. of a family. There are a few different types of life insurance plans you can choose from, they are term insurance, whole life insurance, ULIPs and child life insurance plans, to name just a few.

What is a health insurance plan?

A good health insurance plan is the need of the hour for every family. Healthcare rates all over the country are soaring. Even simple procedures, tests and diagnostics can make quite a dent in your monthly budgets. Health insurance policies make sure that you don’t have to worry about finances when you or a loved one is in need of health care. Choosing the proper health insurance plan for your family is crucial. Health insurance plans take care of your medical expenses. To maximize the benefit of a health insurance plan one can purchase riders, which are like add-ons. There is a critical illness insurance that takes care of your medical expenses in case you contract a serious illness like cancer, heart disease or organ failure. Other riders include accidental death rider and permanent disability rider.