What Will Happen To The Term Insurance If the Policyholder Goes Into Coma?

April 18, 2023

Insurance isn't all about paying premiums and then receiving a sum after years. There are a lot of factors that enable you to make your policy better. One of such aspects is riders. Riders are optional, extra terms that work with your primary policy, usually for adding them; you need to pay an additional cost. A rider delivers supplemental coverage and better protection to crush risks. Insurance riders are efficient add-ons that you can choose to add in your life insurance policy at affordable rates. Critical illness covers are usually included as additional riders to the basic insurance plan. A policyholder can select different riders and expand the coverage span to gain benefits.

Usually, majority insurance companies and banks carry their individual list of critical illnesses covered by them. Nonetheless, it is usually different for every plan, depending on the terms and conditions harbored by the concerned plan. Some standard illnesses that are covered by such plans are Alzheimer’s disease, angioplasty, appalling syndrome, aplastic anemia, cancer, brain surgery, deafness, coma, and a lot more.

What happens to the term plan if the insurer is in a coma?

A comatic state emerges because of an improper functioning of the brain causing a lengthy phase of mental unconsciousness and failed response to exterior stimulants. Such conditions may surface when the brain doesn’t get sufficient oxygen, toxin contact, brutal head injury, a life-threatening boost in glucose levels, and more. Typically, no term plan pays any maturity benefits if the policyholder survives. If the person insured goes into a coma, the term cover keeps working, and ensures all the dues are cleared, either up till the expiration of the term or the life of the insured. Adding a critical insurance rider with the basic term cover reduces the financial stress for necessary treatments.

A List of Critical Elements of Critical Illness rider with Term Plan during Coma

Incorporation of a critical illness rider to your basic term plan can make a policyholder reap a host of benefits. Some of them are mentioned below:

  • The policy includes paying a lump sum amount of life cover.
  • The premium value stays intact throughout the plan tenure, meaning that the premium rate stays as it is despite being diagnosed with a coma.
  • With all the application of the respective terms and conditions of the concerned policy, the plan is applicable and can be employed both within and outside the topographical borders of India.
  • A policyholder can reap tax benefits under Section 80D of the Income Tax Act, 1961.
  • Delivers substantial coverage for managing daily as well as medical expenses properly.

How to obtain the critical illness benefit if a policyholder is in a state of coma?

Usually, many term insurance policies present the choice of the method of obtaining the death benefit and rider benefit. You are permitted to acquire the complete benefit amount for the documented critical illnesses, and this benefit amount payable evolves equal to the critical illness cover as per your preference during the commencement of the chosen plan.

Several plans even relinquish the resulting premium dues if the insured goes into coma or gets permanently disabled. It has been designed to offer maximum benefits under most such circumstances; the person loses the steady flow of income which makes it challenging for a policyholder to make premium payments. Under ordinary circumstances, it is possible to avail three preferable options to acquire the critical illness amenities:

  • An insured peso can choose to receive the benefit payout in a single-time lump sum payment
  • You can even decide to enjoy this benefit in for a stable source of income
  • As per the situation, you can even opt for a segregation of a specific percentage of the total value as a lump sum payment, while the remaining will be used to create a regular source of income.

Some Reliable Insurance Companies Offering Benefits during Coma

Some dependable and famous insurance companies that deliver critical insurance coverage during a coma are:

  • Max Life Insurance Company
  • HDFC Life Insurance Company
  • Tata AIA Life Insurance Company
  • PNB Met Life Insurance
  • Kotak Life Insurance
  • Edelweiss Life Insurance
  • India First Life Insurance


Insurance policies are usually viable for a specific period of time. It can be understood as the policy term. When the term terminates, you need to either perform policy renewal or buy a new one. With some types of insurance, you select a beneficiary, the person you want to receive the policy’s benefits or payments. When you buy an insurance policy, you are required to pay a fee known as premium. Some premiums are disbursed monthly, such as health insurance. Others may be reimbursed once or twice a year. The cost of your premium normally relies on the fact that how much of a risk you are to the insurance provider.

The paramount aim of any standard-term insurance plan is to equip the insured and the family with comprehensive financial protection to tackle deplorable circumstances. Yet, to relish coverage against injuries and accidents that might cause a person to suffer from coma, it is most suitable to reap rider benefits by just paying a little bit extra from the regular amount. Doing so helps you enjoy protective coverage despite any accidental events.

It is not a doubt anymore that insurance is an effective tool that offers you a systematic way to manage your risk. As lifestyle diseases are on the rise, it is necessary to get a term insurance that offers a way to mitigate risks. When you buy insurance, you buy protection against unforeseen financial losses. The insurance company pays you or nominee if something tragic happens to you.

People buy the insurance plan not just to manage risks that surface as a result of unexpected events but also to pay for routine things, such as annual medical checkups, and more.

Constructing a safety net even if you are blossoming currently can save you from the ill-effects of precariousness. Insurance acts as a safety net that safeguards you and your dependents and offers an endless number of benefits.

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