Term Insurance with Critical Illness Rider

Do You Need Critical Illness Riders with a Term Plan?

Life is unpredictable & Illnesses always come unannounced and affect your physical as well as financial well-being. Not only will you have to take care of the hefty hospital bills. Besides this, chances of skipping work or, in the worst-case scenario, being asked to quit your job will increase your anxieties as well. Such consequences impact your income flow and ability to cope with the huge medical bills. 

The critical illness rider has been created with the goal to protect yourself and your family when it comes to dealing with huge medical bills. With this rider, the term life insurance gets a lump sum amount on the diagnosis of any one of the below mentioned critical illnesses: 

Best Term Insurance Plans with Critical Illness Riders

 Disclaimer: Policybazaar does not rate, endorse or recommend any specific insurance provider or insurance product offered by any insurer.

1. Bharati AXA Flexi Term

   Bharati AXA Flexi Term provides the insured with the flexibility to choose from 3 different life coverage (death benefit) pay-out options:

   • Lump-sum – One-time payment of the sum assured

   • Monthly Income – Monthly payout for 15 years where the income will increase by 10% every successive year

   • Lump-sum plus Monthly Income – Half of the sum assured is given at the death of the policyholder and the remaining half will be given as a monthly payout for the next 15 years (increasing annually at 10%).

   The policy also allows you to choose any one of the 3 critical illnesses covered at the time of signing up:

   • Comprehensive Cover – Covers 34 critical illnesses

   • Major Illness Cover – Covers 15 major critical ailments

   • Heart & Cancer Cover – Covers 9 critical illnesses for heart and cancer

2. Bajaj Allianz eTouch Online Term

   Bajaj Allianz eTouch Online Term is a comprehensive term insurance plan that provides life, accidental, and health insurance to its policyholders along with the benefit of premium waiver. In short, the plan works like a shield to protect the life assured against various odds. The plan comes in four different variants, viz:

   • Shield – Life benefit + Premium Waiver benefit (in case of Accidental Total Permanent Disability)

   • Shield Plus – Life Benefit + Premium waiver benefit + Accidental Total Permanent Disability Benefit

   • Shield Super – Life Benefit + Premium waiver benefit + Accidental Death Benefit + Accidental Total Permanent Disability Benefit

   • Shield Supreme - Life Benefit + Accelerated Critical Illness Benefit + Premium waiver benefit + Accidental Total Permanent Disability Benefit

3. DHFL Pramerica Flexi Term

   DHFL Pramerica Flexi Term is a customizable financial shield to safeguard your family’s future financial needs. The plan offers the option of enhancing or adding a booster to one’s life cover as per the changing needs for changing life stages. As a policyholder, you also get the flexibility to choose from 5 different protection options:

   • Life Cover

   • Life Boost

   • Life Smart Step Up

   • Life Health Hike

   • Life Total 

4. Edelweiss Tokio My Life+

   Edelweiss Tokio My Life+ is a non-participating, non-linked term insurance plan that not only covers the insured’s life but also provides financial security to his family at a very competitive price. With this plan, you can either choose to provide your family with a lump sum amount at one go or with a monthly payout (which should be a more preferred choice as a huge lump sum amount is not easy to manage and a lot depends on the individuals’ savings aptitude). 

5. Kotak Life e-Term Life

   Kotak Life e-Term Plan is one of the most economical pure risk cover term plans, that is designed to provide one’s family with the highest level of financial protection. There are 3 different plan options to choose from and in the event of the death of the life assured, his nominees will receive the death benefits:

   • Life Option - Sum Assured on Death

   • Life Plus Option - Benefit under Life Option + Accidental Death Benefit

   • Life Secure Option - Benefit under Life Option + Waiver of Premium on Total and Permanent Disability  

6. Max Life Insurance Online Term Plus

   Max Life Insurance Online Term Plus policy is the most economical way of ensuring the financial well-being of the insured’s family, even in his absence. All you have to do is pay a nominal, annual premium, for a fixed period of time, and in case of your unfortunate demise during the policy tenure, your family is paid the sum assured.

   This particular plan only provides a death benefit (no survival benefits) on the demise of the life assured, which he can choose from the following 3 options:

   • Sum Assured

   • Sum assured plus level monthly income

   • Sum assured plus increasing monthly income  

7. SBI Life Insurance Poorna Suraksha 

   SBI Life Insurance Poorna Suraksha is a non-linked term insurance policy that offers an inbuilt critical illness cover to its buyers. This plan is designed keeping in mind the individuals’ different financial planning styles. They understand the fact that individuals like to change and adjust their financial planning from time to time. 

   Their ‘Life Stage Rebalancing’ feature is designed with an aim to rebalance the cover between Critical Illness cover and Life Cover.

   At the time of buying the policy, the policyholder can split his basic sum assured between Life Cover and Critical Illness Cover in the ratio of 80:20. With each passing policy year, a certain percentage of the CI sum assured will increase (depending upon the chosen policy tenure) and the Life Cover sum assured will decrease by an equal ratio. 

Things to Consider When Buying a Critical Illness Rider with Term Insurance 

• Here are few parameters to consider before buying critical illness rider: 

• Avail tax benefit under section 80D and 80C of the Income Tax Act, 1961. 

• The amount of sum assured selected under the policy is payable in case of insured’s demise or total permanent disability. 

• The amount of benefit payable will be equivalent to the cover of critical illness chosen. 

• The benefit will be payable during the 1st diagnosis itself as there no minimum duration of survival is required. 

• The payment of premium is done in form of installments