Brajesh thought his life and career were on autopilot. At 34, the computer engineer was promoted to a senior role at his multinational company. His wife, 31-year-old Sunita, had also recently had their first child, a boy named Surendra.
The young family had just bought their first home in Mumbai’s western suburbs when Brajesh developed health problems, such as extreme fatigue, loss of appetite and stomach pains. At first, he pegged it to his eating habits – his diet mostly consisted of high-starch, high-salt foods with little fibre or fresh produce.
When a trip to his doctor revealed a 10-centimetre mass in his stomach, Brajesh panicked. The doctor said surgery would likely have a positive outcome leading to recovery, but Brajesh considered the worst-case scenario – inability to earn an income due to permanent disability or death.
Fortunately, Brajesh was only out of action for a month after surgery and had enough money saved to cover this break from work. But, had he needed more time off work, he would have faced financial ruin. The health scare pushed him to immediately buy insurance to protect his family.
Rather than buying separate term life and critical illness policies, Brajesh decided on a comprehensive protection plan.
Here are five reasons why a comprehensive protection plan offers peace of mind, plus full financial protection at a reasonable cost:
- All-in-one protection in a single product
A comprehensive protection plan guards you and your dependents by combining term life insurance with critical illness coverage.
Term life insurance is the most basic form of life cover, paying a sum assured to the policyholder’s dependents in case of his or her untimely death. In most cases, the policyholder is the main provider in the family, so their loss is felt not only emotionally, but also financially.
Critical illness coverage acts as an income replacement plan if you’re diagnosed with a serious or life-threatening disease that interrupts your normal course of life.
Compared to standalone term insurance policies with riders, comprehensive protection plans also allows Brajesh to wrap his insurance payments into one product, which saves time and money.
- You can still take advantage of riders
Some comprehensive protection plans come with the option of several riders, including accidental death, accidental total and permanent disability, waiver of premium and hospital cash benefit.
These riders enhance your life and critical illness for an additional fee:
In the unfortunate event of an accidental demise, 100% of the rider sum assured is paid as a lump sum, in addition to the basic sum assured.
Accidental total and permanent disability
In the event of total and permanent disability due to accident, 100% of the rider sum assured is paid as a lump sum.
Waiver of premium
In the event of total and permanent disability due to accident or diagnosis of a pre-defined critical illness, all future premiums under the base policy and attached riders are waived off until the expiry of the rider or death of assured life.
Hospital cash benefit
You can claim a daily cash benefit in case of hospitalization, treatment in an intensive care unit (ICU) or recuperation for seven or more days of continuous hospitalization for the same injury or disease.
- Your coverage doesn’t end if you make a critical illness claim
When you buy a comprehensive protection plan with critical illness and life cover, you get a 2-in-1 solution that allows you to choose the sum assured for each defined event.
If you make a critical illness claim, your life cover remains intact, but the amount of life cover will decrease accordingly. For example, supposed you select a base sum assured of Rs 1 crore and critical illness sum assured of 10 lakh. If you make a critical illness claim worth that amount, your sum assured in the event of premature death will be reduced to 90 lakh.
- Up to 35 critical illnesses covered
Comprehensive protection plans include the most commonly-occurring diseases in India, such as cardiac ailments, stroke, kidney disease and cancer, among others.
But some cover as many as 35 critical illnesses, including those often overlooked by other critical illness plans, such as Alzheimer’s disease, bacterial meningitis, encephalitis and lupus.
- Flexibility in payouts
Comprehensive protection plans offer flexibility in terms of sum assured payout modes.
You have the option of a lumpsum death benefit paid upon death of the life assured, or you can choose to receive a percentage of the death benefit every month for a fixed number of months. A combination of both options is also available, wherein the beneficiary receives a lumpsum upon death of the policyholder and the balance will be received in the form of regular income after death.
Both life and critical illness cover are essential to a full financial plan. A comprehensive protection plan safeguards you and your dependants against all eventualities that can cause financial distress, giving you peace of mind.