Term insurance plans provides financial protection to your family members in case of your absence, helping them to live their lives you have planned for them. Also, term insurance with critical illness cover secures you by offering you protection for the treatment costs of medical illnesses. You can include a critical illness rider in your base plan and receive the rider sum assured on the diagnosis of any of the critical illnesses covered under the plan. Let us understand what critical illness rider is and some of the best term insurance with critical illness cover available in India.Read more
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A Critical illness rider is a popular rider that helps the policyholder in providing financial support in case they are diagnosed with a critical illness during the plan term. Critical illness is a dangerous and life-threatening ailment such as stroke, kidney failure, cancer, and others. This rider enhances the cover. When you buy term insurance plan with critical illness cover option, you can claim the sum assured amount on the diagnosis of a critical illness covered under your plan. The payout money can then be used to pay off ambulance charges, the fees of doctors, or medical expenses.
The term insurance with critical illness rider can be bought during the inception of the policy or any subsequent policy year of the base plan. This additional benefit can be availed by including the term rider in the base plan at nominal premiums payable with the base premiums.
Here is a list of all the critical illness term insurance plans available in India in 2023.
|Insurance Provider||Name of the Plan||Number of Critical Illnesses Covered||Claim Settlement Ratio of the Insurer|
|ICICI Prudential Term Insurance||ICICI Prudential iProtect Smart||34||97.82%|
|HDFC Term Insurance||HDFC Life Click 2 Protect Super||19||98.66%|
|Max Life Term Insurance||Max Life Smart Secure Plus||64||99.34%|
|Tata AIA Term Life Insurance||Tata AIA Life Sampoorna Raksha Supreme||40||98.53%|
|PNB MetLife Term Insurance||PNB MetLife Mera Term Plan Plus||50||97.33%|
|Canara HSBC Term Insurance||Canara HSBC iSelect Smart360||-||98.44%|
|Kotak Life Term Insurance||Kotak e-Term||37||98.82%|
|Edelweiss Tokio Term Insurance||Edelweiss Tokio Life Total Protect Plus||12||98.09%|
Disclaimer: Policybazaar does not rate, endorse or recommend any specific insurance provider or insurance product offered by any insurer.
Here is a list of all the ailments covered under a term insurance with critical illness rider included in it. The accurate list of critical illnesses covered under each plan differs with different insurance companies, thus it is advised to go through the policy documents to get a better understanding of all the illnesses covered under a specific plan.
Heart valve surgery
Cancer of specified severity
Open Chest CABG
Major Head Trauma
Major Organ/ Bone Marrow Transplant
End-stage Liver Failure (Chronic Liver disease) Major Organ Benefit
Motor Neurone Disease with Permanent Symptoms
Medullary Cystic Disease
Permanent Paralysis of Limbs
Primary Pulmonary Hypertension
End Stage Lung Failure
Benign Brain Tumor
Motor Neurone Disease with Permanent Symptoms
Multiple Sclerosis with Persisting Symptoms
Third-degree Burns (Major Burns)
Loss of Limbs
Systematic lupus Eryth with Renal Involvement
Loss of Independent Existence
Kidney Failure Requiring Regular Dialysis
Parkinson’s Disease, and more.
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Let us understand the critical illness rider in a term insurance plan using an example. Suppose two people, Niharika and Sania have purchased a term insurance plan.
|For Term Insurance||For Term Insurance with Critical Illness|
|Niharika is a 20 year old non-smoker who buys a 1 Crore term insurance till 50 years of age||Sania is a 30-year-old non-smoker who purchased a 1 Crore term insurance with a critical illness rider of 25 Lacs for 30 years|
|She pays the premiums for the regular term on a monthly basis||She pays the premiums for the entire policy term on a monthly basis|
|She unexpectedly suffers an unforeseen death in the 7th policy year and the nominee is eligible to receive the sum assured||A few years later she is diagnosed with a critical illness specified under the plan and receives the rider sum assured of Rs. 25 Lacs while the policy cover of 1 Crore continues as usual|
|The nominee submits the required documents with the claims form and receives the Rs. 1 Crore sum assured in her bank account||On Sania’s unfortunate death during the policy term, her nominee receives the 1 Crore sum assured and the policy terminates|
As seen above in Niharika’s case, the term plan pays out only in case of an unfortunate death. If Niharika had been diagnosed with a critical illness, she would not have received any benefit amount because her term insurance did not have the critical illness rider included in it. On the other hand, Sania received the rider sum assured on diagnosis of a critical illness and her nominee will be eligible to receive a death benefit in case of her untimely death because she purchased a term plan with critical illness rider. Sania can use the rider sum assured to pay for her medical treatments and recover in peace without worrying about the payment of hospital bills.
Note: You can calculate the premiums for your term of choice using the term insurance premium calculator.
Critical illness term insurance offers the following benefits:
Lump sum benefit- One go
Critical illness rider benefit helps the life assured to manage the expenses related to treatment by paying a lump sum amount. The policyholder receives all the money at one time which helps the policyholder pay for the treatment expenses without any worry.
In the event of your job loss due to a critical illness, the claim received from the term plan with critical illness rider can be used as replacement for your income. You can use this amount to pay your monthly bills like rent or children’s fees and other requirements.
No change in premium amount
The premium amount for your term insurance with critical illness cover will remain the same even on the critical illness diagnosis. This means there will be no increase in premium rate within the same plan due to a new critical illness. Furthermore, if the plan offers a Waiver of Premium (WOP) on Critical Illness (CI) then all the remaining premiums for your term plan will be waived saving you the worry of having to pay the remaining premiums.
The cost of treatment for critical illnesses such as heart attack, kidney failure, cancer, and others is very high in India that can burn your pocket in no time. The critical illness rider with term plan offers comprehensive coverage against various critical illnesses at a nominal additional premium rate.
Dual Tax Benefit
Term insurance with critical illness cover allows policyholders to get tax benefits as per the prevailing laws u/s 80C and 10(10D) of the Income Tax Act, 1961. Buying a critical illness rider along with a base term plan doubles the tax benefit as it adds tax benefit under section 80D, thus increasing their benefit.
Increase in Survival Chances
With the rising cost of critical illness treatment in India, there are many individuals who leave treatment in middle because of insufficient funds. Opting for a critical illness rider to support you over your term plan will make sure that you will never be in a position to compromise your treatment due to lack of funds. Simply put, this rider payout can help you increase your survival chances by allowing you to pay for your medical expenses and allow you to focus on your stress-free recovery.
Following are the types of individuals who could benefit from a critical illness rider added as their base term insurance add-on.
Individuals with a history of critical illnesses in the family: If you have any serious ailments running in the family there is a slight chance of you suffering from the same illness in the future. Therefore if you purchase the best term insurance plan while you are still healthy and young, you can get coverage against these illnesses at an affordable premium rate.
Sole Income earners: People who are the only breadwinners of the family will be majorly affected by the loss of income in case they get diagnosed with a critical illness. They will not only be burdened with expensive hospital bills but also find it difficult trying to stay above their rent and child’s fees. Term insurance with critical illness cover can help the family take care of these expenses while the policyholder focuses on their speedy recovery.
People above 40 years of age: People often start developing more ailments as their age increases. Term plan with critical illness rider can help people over the age of 40 secure their future in case they are diagnosed with a critical illness.
People within high-pressure jobs: Stress and an unhealthy lifestyle are one of the leading causes of a lot of critical illnesses. Now it may not be possible to change the high-pressure job but as a preventive measure, you can buy term plan to protect yourself in case of an eventuality.
Let us take a look at the eligibility conditions for critical illness term insurance:
|Entry Age||18 years||65 years|
|Maturity Age||-||75 years|
|Sum Assured||Base sum assured||Depends on policy T&Cs|
|Waiting Period||90 days|
|Survival Period||30 days|
|Cover Period||As specified in the plan|
|Premium Payment Term||Regular, Limited, or Single Pay|
|Premium Payment Mode||Same as the base term plan|
Follow the below steps to buy a term plan with critical illness from the comfort of your home in just a few minutes.
Visit the Term insurance page
Enter your basic information like name, gender, contact information, and date of birth
Fill in your annual income, occupation type, educational background, and lifestyle habits like smoking and drinking
Select the most suitable term insurance with critical illness cover and proceed to pay
Let us take a look at some of the things to consider before buying term insurance with critical illness cover:
The amount of life cover selected under the policy is payable in case of the assured’s demise to the family of the policyholder.
On diagnosis of a critical illness covered under the plan, the amount of benefit payable will be equivalent to the rider sum assured of the critical illness chosen.
The benefit will be payable during the 1st diagnosis itself as there no minimum duration of survival is required.
Every term insurance with critical illness cover offers coverage against separate illnesses and has a distinct set of T&Cs for different plans.
The critical illness rider can enhance the policyholder’s survival chances by offering money to pursue the best treatments available.
Make sure you are aware of any waiting period or survival period to avoid future confusion.
The payment of the premium can be done in a single lump sum, or regular installments for a limited period or the whole policy tenure.
You will be eligible to avail of tax benefits under sections 80D and 80C of the Income Tax Act, 1961.
Here is a list of all the documents you would need to claim your term insurance with critical illness rider:
Duly filled claims form
Original policy documents
Assured’s valid ID and address proof
All pre and post-hospitalization records
Medical test reports showing the diagnosis of the covered critical illness
Medical reports attending medical practitioner’s certificate
Assured’s copy of the canceled cheque or bank statement
Due to people’s hectic schedule these days, everyone is at the risk of getting diagnosed with critical illnesses like cancer or cardio-vascular ailments before they reach the age of 70. The treatments for these critical illnesses can lead to a massive financial burden on the family as the treatment costs for these diseases can easily run into lakhs. Opting for one of these term insurance with critical illness coverage in India will surely prove to be helpful for you in the long run.
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