Critical Illness cover and disability rider benefits are essential requirements in a Term Insurance Plan. These covers and benefits also help customers to choose a particular term insurance plan. Knowing about Term Plans with Critical Illness and Disability Rider is necessary if an individual decides on choosing a plan.
*Tax benefit is subject to changes in tax laws. *Standard T&C Apply
** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
Term Plan with Critical Illness and Disability Rider provides coverage for various critical Illnesses and Terminal Illnesses.
In Term Plan Critical Illness Rider, if the insured is diagnosed with any critical illness covered by the plan, they will be given a lump sum amount to treat such diseases. When it comes to the Disability Rider, if the insured is sick, injured, or unable to work, then the insurer will support him financially through the plan.
Some term plans also provide coverage during times of disability of the insured. Some plans cover more than 40 critical illnesses. Critical Illnesses provides coverage for hospitalization or medical and surgery expenses under a particular plan. Disability Rider provides for permanent disabilities of a customer. This benefit acts as a monthly income if the customer loses his job or cannot work due to any disability.
There are various times when a Term Plan with critical illness and disability rider will be helpful. Details on when a term plan with critical illness and disability rider will be beneficial are provided below.
Critical Illness coverage is provided for a set of chosen illnesses under a particular plan. Under this option, coverage is provided for hospitalization, medication and surgery expenses that happened due to any critical illness mentioned in the plan. With critical illness insurance, a customer can stay stress-free about any hospital expense and focus on recovery during their Illness.
Some critical illnesses that are commonly covered by various term insurance plans with rider are:
Disability Rider is one of the valuable add-on benefits that an insurance provider can offer to their customers. Disability Income rider benefits paid to the customer with a disability is a monthly income of 1% of the sum assured to be provided during the policy's maturity.
Disability Rider benefits will only be applicable for people with permanent disabilities. The policyholder must have been disabled for at least six months prior to receiving any income or benefit under disability rider.
Some common disabilities covered by the disability rider cover are:
Term insurance plan along with the value-added Critical Illness and Disability Riders offers several benefits to the insured. Various reasons why the insured must choose the critical illness and disability riders with the term plan are listed below:
The insured that opted for Critical Illness and Disability Rider is allowed to get their portion in their accelerated death benefit if they contracted with any critical ailments or disability. These benefits are offered to the insured only for the specified listed terminal disease in the policy.
When the insured faced the point of illness diagnosis, then they have to face two choices such as:
1. Insured can accelerate and get some portion of the sum assured while they are living.
2. Make accessible the entire lump sum amount to the nominees or the beneficiaries of the insured on their demise.
In addition, the insured is allowed to get the benefit from such riders for the hospitalization and non-hospitalization expenses, provided such expenses are covered by the term plan with the terminal illness riders. Also, in some plans with the said riders, the insured can get payouts in the form of a regular income supply from the insurer during their recovery period.
The insured need to be aware of some basic information before opting for the Critical Illness and Disability Riders, such as:
As discussed above, there are various benefits of having term insurance with critical illness and disability riders. Customers must know their Insurance plan well before choosing them. Sum assured amount for such term plans starts from 5 lakh to 50 lakh. Some plans provide accidental benefits of up to 1 crore. Thus, one can choose according to his/her requirement.
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