Term insurance plans are perhaps the most sought after life insurance products these days. Not only consumers, financial experts are always in favor of term insurance plans over any other insurance products. A term plan is better than other life insurance products because they offer higher sum assured amount at very low premium rates.
Though term insurance plan are quite popular, a large fraction of people hardly know about the different riders available with it. Riders are important to consider while buying term insurance plans. Riders offer an enhanced insurance protection. But, the question that often comes to the consumers’ minds while buying an insurance plan is- which riders should one buy?
Though it largely depends on the requisites of the insurance seekers, nonetheless, industry barons and insurance experts often suggest that policyholders must have Critical illness riders with a term insurance policy.
While zeroing in on the term insurance plan, one must consider the aspect that why, as a buyer, they should go for a term plan that offers benefits as riders. To give you an apt answer, we have discussed this briefly, further in our article.
Riders strengthen the protection offered by a term insurance policy by offering multiple benefits apart from a core offering of the death benefit. However, the costs and conditions of riders vary from policy to policy. While some riders are inbuilt in term insurance plans, other riders need to be purchased separately by paying extra premium along with the basic premium.
Although all the riders have its own importance in some or the other ways, critical illness rider is a must which should be considered while buying a term insurance policy. Critical illness can dry out a person’s finance in the most freakish way, so it is best to have term plan with critical illness benefit.
Under critical illness rider, the insured receives a lump-sum on the diagnosis of critical illness pre-specified in the policy. According to the policy terms and conditions detection of critical illness may either continue or terminate. According to the amount paid by the policyholder, the policy coverage becomes less. However, nowadays many insurance companies are coming up with innovative critical illness rider which includes lifestyle disease as well. It is always advisable to check the coverage carefully prior choosing the rider.
Apart from this the insured can also take benefit of hospitalization and non-hospitalization expenses that are both covered by your term plan that comes with a critical illness benefit. Moreover, the insurer may also provide much-needed cash flow during the recovery period. In case, the insured is diagnosed with any critical illness that is covered by the insurance company then he/she can get a tax-free lump sum in one go that should be used to pay off your mortgage, depth or any other liability the insured person may have.
It is very crucial for the insurance seekers to consider having a critical illness benefit while purchasing a term plan. As this can save the buyer from getting financially drained out and can help them to carry out the treatment smoothly.
Even though the process of critical illness claim is transparent, it is important to keep in mind the different aspects like understanding the rider in detail, the inclusions and exclusions of the rider and the varying cost of riders from one insurer to another.
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