Understanding Priority Insurance

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Having insurance is an essential aspect of protecting oneself against unfortunate events. While there are various types of insurance policies, it is essential to prioritize the insurance policies that offer maximum coverage. Priority insurance is one such policy that offers extensive coverage and protection against critical events that may affect one’s life. In this article, we will discuss priority insurance, its benefits, and how it can help you safeguard your future.

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What is Priority Insurance?

Priority insurance is an insurance policy that provides extensive and comprehensive coverage against critical events such as chronic illness, disability, or death. It is primarily designed to ease the financial burden associated with unexpected and unfortunate events.

Priority insurance is unique in its coverage as it provides protection that goes beyond the traditional coverage offered by life or health insurance policies. It offers coverage for a wide range of critical illnesses, including but not limited to cancer, heart attack, organ transplants, and severe burns.

The policyholder receives a lump sum amount upon the occurrence of the insured event. The amount can be used to cover treatment expenses, purchase medical equipment, pay off debts, or support the family’s financial needs.

Benefits of Priority Insurance

Priority insurance offers several benefits that make it an essential policy for safeguarding one’s future. Here are some of the advantages of priority insurance:

1. Comprehensive Coverage

Priority insurance offers comprehensive coverage that includes critical illnesses, disability, and death. It provides financial support to the policyholder and their family during tough times.

2. Financial Security

Priority insurance offers financial security to the policyholder and their family in case of an unfortunate event. The lump sum amount received can help alleviate the financial burden associated with such events.

3. Flexibility

Priority insurance policy offers flexibility in terms of the sum assured and premium payment. The policyholder can choose the sum assured as per their needs and budget.

4. Tax Benefits

Policyholders can avail tax benefits under Section 80C of the Income Tax Act, 1961, for the premium paid towards priority insurance. The amount received on the occurrence of the insured event is also tax-free.

Priority Insurance vs. Traditional Insurance Policies

One of the significant differences between priority insurance and traditional insurance policies is the coverage offered. Traditional insurance policies provide coverage against death, accidents, and disability, while priority insurance provides extensive coverage against critical illnesses.

Another difference between priority insurance and traditional insurance policies is the payout. Traditional insurance policies pay out on the occurrence of death, disability, or accidents, while priority insurance pays out upon the occurrence of critical illnesses.

FAQ

Question
Answer
What is covered under priority insurance?
Priority insurance covers critical illnesses, disability, and death. It provides financial support to the policyholder and their family during tough times.
What is the difference between priority insurance and traditional insurance policies?
Priority insurance provides extensive coverage against critical illnesses, while traditional insurance policies provide coverage against death, accidents, and disability.
Can I avail tax benefits under priority insurance?
Yes, policyholders can avail tax benefits under Section 80C of the Income Tax Act, 1961, for the premium paid towards priority insurance. The amount received on the occurrence of the insured event is also tax-free.
How flexible is priority insurance?
Priority insurance offers flexibility in terms of the sum assured and premium payment. The policyholder can choose the sum assured as per their needs and budget.
What is the lump sum amount received upon the occurrence of an insured event?
The policyholder receives a lump sum amount upon the occurrence of the insured event. The amount can be used to cover treatment expenses, purchase medical equipment, pay off debts, or support the family’s financial needs.

Conclusion

Priority insurance is a comprehensive insurance policy that provides extensive coverage against critical illnesses, disability, and death. It offers financial support to the policyholder and their family in case of an unfortunate event. The policyholder receives a lump sum amount upon the occurrence of the insured event, which can help alleviate the financial burden associated with such events. With its flexibility and tax benefits, priority insurance is an essential policy for safeguarding one’s future.

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