Offering financial protection to the family in times of need is one of the prime concerns of any breadwinner. However, this concern increases manifold when one of the family members has a particular disability. You need to be sure that the disabled individual is provided for in your absence. This is where a term insurance plan comes into the picture. Read on to know more about the term plans for a disabled person.

What exactly is a term insurance plan for a disabled individual?

A term insurance plan taken for a disabled individual is a type of plan where a disabled person is the nominee of the policy. In most cases, rather than offering a lump sum amount to the nominee in case of the policyholder’s death, they are offered a regular income until death. However, they might even choose to get a lump sum payment if the policyholder states that beforehand and deems that suitable for the nominee.

The idea is to ensure that the disabled person does not face financial hardship in the absence of the guardian who used to provide for them. The fact that the sum assured will go to a disabled person is taken into account when you calculate term insurance premium.

Things to consider in the Term Insurance Quote for the disabled

When the nominee of the term insurance policy is a disabled person, it is important to take extra care regarding various aspects of the policy. Here are a few things you need to consider when taking a term policy for the disabled.

  1. Coverage amount

The term insurance policy needs to have adequate coverage to meet the needs of the disabled individual. Consider the monthly expenses you have for the person and add an extra amount to that according to what you feel is suitable. The extra amount is for sudden contingencies or needs. For instance, maybe their doctor adds a particular medicine to their prescription that is more expensive than what they currently have. Even in your absence, they should have the money to afford such things.

  1. The premium amount

A term insurance policy typically has no maturity benefits, though you can add riders to ensure some maturity benefits. However, a term plan is still important when you have a disabled individual dependent on you. So, make sure that the premium amount is suitable enough for you to make the monthly payments without defaulting. The last thing you would want is to lose all the benefits from a policy lapse.

  1. The inflation factor

The cost of medicines and treatment now is nothing compared to what it is going to be in five years. So, you need to keep the inflation factor in mind when you choose the coverage or any rider to add to the policy. The idea is to leave behind sufficient funds for the disabled individual.

That’s all for now. It is time for you to make that application and get the term plan to secure the future of your loved one.

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