Does LIC Cover Critical Illness?

Why Should You Buy the Critical Illness Rider from LIC? 

LIC, one of the largest insurers covers critical illness and this benefit helps you secure your family in case of your absence by just paying a nominal fee. LIC New Critical Illness Rider Benefit is a non-linked plan that majorly focuses on decreasing the financial stress that a policyholder or his/her loved ones go through if the policyholder gets diagnosed with critical illnesses (mentioned in the plan). This rider can only be attached to only non-linked standard plans provided by LIC (Life Insurance Corporation of India). You can get the following benefits under this critical illness rider with LIC plan: 

• The benefit of critical illness is paid upon the 1^st diagnosis of any of the mentioned 15 critical illnesses
• You get the tax benefits on premium paid towards the critical illness rider u/s 80D of the Income Tax Act, 1961. 

What is the Need for a Critical Illness with LIC Benefit? 

A life insurance plan provides financial protection to the policyholder’s family in case of an unfortunate event. The LIC critical illness rider benefit can be purchased as an additional option along with the existing plan to increase the policy’s coverage. 

Following are the reasons you should consider purchasing a critical illness rider: 

1. Medical Costs: 

   Medical treatments, nowadays have become a financial obstacle for today’s population. To solve this problem, it is very essential to invest in this rider benefit. This rider helps families to overcome any type of financial stress during their critical times. 

2. Premium: 

   The premium amount remains unchanged even though there is an additional benefit to the standard plan. 

3. Tax Benefits: 

   Get the tax benefits on the premiums paid towards the critical illness rider u/s 80D of the Income-tax Act, 1961.

4. Financial Back-Up: 

   These days, the medical treatment cost is so high that they can hit your pocket hard. Therefore, it is very important to be secured financially to deal with these kinds of emergencies. Critical illness rider financially protects an individual against different types of medical emergencies. 

Eligibility of Critical Illness with LIC Rider Plan  

As we have discussed above, LIC does cover critical illness. Critical illness with LIC is a must-have additional benefit that secures the policyholder’s family against any medical emergencies. Now, the question arises, who are eligible for availing of this benefit? Let’s understand the eligibility criteria of LIC New Critical Benefit Rider: 

Benefits of LIC’s New Critical Illness Benefit Rider 

Upon the 1^st diagnosis of any one of the mentioned critical illnesses, the critical sum assured amount is paid to the policyholder. The critical illness rider is paid at one time at the time of policy tenure. The rider ceases when the critical illness sum assured amount is paid. Following are the critical illnesses covered under this plan: 

Cancer of Specified Severity 

A malignant tumor is regarded as the uncontrollable growth and the spread of malignant cells with the destruction and the invasion of normal tissues. The diagnosis of a critical illness must always be supported using histological proof of malignancy. The cancer term involves lymphoma, leukemia, and sarcoma. 

The following illnesses are excluded: 

• All types of tumors are described histologically as benign, carcinoma in situ, borderline malignant, pre-malignant, neoplasm of unknown behavior, low malignant potential, or non-invasive, involving but not restricted to carcinoma in situ of cervical dysplasia and breasts. 
• Malignant melanoma 
• Non-melanoma skin carcinoma 
• Prostate tumors 
• Thyroid cancers 
• Chronic lymphocytic leukemia 
• Non-invasive bladder papillary cancer 
• Gastro-intestinal stromal tumors 
• All tumors that are due to HIV infection 
• Open Chest - CABG 
• Kidney failure that requires regular dialysis 
• Myocardial Infarction 
• Bone Marrow/Major Organ Transplant 
• Stroke that results in long-lasting symptoms 
• Permanent limbs paralysis 
• Aortic surgery 
• Multiple sclerosis 
• Pulmonary hypertension 
• Blindness 
• Dementia/Alzheimer’s disease 
• Benign Brain Tumors 
• Open Heart Replacement 
• 3^rd-degree burns 

Other Details 

1. Grace Period

   1 month but not less than 30 days of the grace period will be allowed for the yearly, half-yearly, or quarterly payments of rider premium. 15 days is allowed for the monthly rider premiums. 

2. Revival 

   Rider revival is based on the revival of the base plan. You have the option to revive the policy within two years from the date of 1^st unpaid premium. To complete this process, submit a written application for plan revival and pay all the due premium till the date of revival. 

3. Freelook Period 

   15 days of free look period is provided to review the terms and conditions of the plan from the date of receipt of the policy documents. If you are not satisfied with the terms and conditions of the plan, then you have the option to return the plan and receive the rider premium refund that is paid minus the critical illness risk premium, charges of medical examination, and stamp duty charges. 

4. Surrender

   This plan has no surrender value. In case of surrendering the base plan for limited payment policies, you shall receive the refund based on the following conditions: 

   If the total premium has been paid for the initial consecutive 2 years for 10 years of PPT and the initial 3 consecutive years for 10 years of PPT or more. 

Exclusions of LIC Critical Illness Rider Benefit 

If the life assured is diagnosed with the mentioned illnesses, the benefit amount will not be paid in case the ailment has been caused directly or indirectly. This is due to the following reasons: 

• Policyholder’s death occurs within a month of the diagnosis of the critical illness 
• Diagnosis of a critical illness within the 90 days of the waiting period 
• Self-inflicted injury, the attempt of suicide, criminal activities 
• HIV positive 
• In case of war, riots, etc. 
• Pre-existing health conditions 
• Waste exposure or nuclear radiations 
• Congenital anomaly

How to Buy LIC Critical Illness Rider Benefit 

Follow the below-mentioned steps to purchase critical illness with LIC Benefit: 

• Visit the company’s website 
• If you are a new user, the insurance selector option will help you select the right choice based on income, occupation, age, and insurance requirements. This will further help you determine the period of coverage and the right policy term. 
• Then, select a premium calculator to compute the premium amount for your current policy and rider chosen 
• Pay using online payment modes, such as net banking, phone banking, etc. 
• If you are an existing user, you can check the policy status on the company's website. To do that, complete the online registration and log in to the LIC portal to check the online policy status. 

Wrapping It Up!

An additional rider benefit is always a wise idea while purchasing an insurance plan. Critical illness with LIC rider benefit plan is the one-stop solution to all your problems such as medical expenses and emergencies faced by a life assured and hence is a necessity.