Critical illness rider policy comes in handy in covering critical illnesses. This can be availed along with your term insurance plan.
But what happens in case of a claim? Will the basic policy continue to cover you? Let’s check!
A term insurance policy can be further boosted with various riders. A critical illnesses rider is one of the most sought after products when it comes to buying term insurance riders. This policy provides financial security to a policyholder whenever diagnosed with any form of major illness. The different policies usually list the illnesses for which the benefits are provided basis on the company norms.
The World Health Organization has reported the importance of having critical illnesses cover. Due to the rising cases of critical illnesses and their exorbitant treatment expenses, having a policy that covers these illness is necessary. Further, India has seen an increase of 15.7 per cent in cancer cases since 2012. Also, cardiovascular diseases are a leading cause of death in India, with around 49.8 per cent rate of mortality within the period of 2007-2017.
Considering the ever-rising treatment expenses, providing the individual with financial support is what a critical illness rider primarily aims for.
A lump sum amount is provided to the policyholder whenever he/she gets diagnosed with an illness. The policy mentions a specific waiting period after getting diagnosed with a critical illness. Only after the specific waiting period is over, the insured can be benefited from the claim coverage. Claims for critical illness riders are made on the availability of the medical diagnosis reports.
The insurance company is to be contacted, and the claim is to be registered. However, a list of documents is needed for the same:
The claim section of the insurer will then verify the submitted documents. As per the verification, the claims made will be approved or sometimes might get disapproved.
The riders provided by an insurance company are certain additional benefits offered to the life insured along with the base policy. It is not possible to purchase a rider individually. Some of the benefits of having a critical illness rider with term insurance policy are:
There are certain conditions for a rider benefit that comes with term insurance:
Even after a claim of critical illnesses is made, the base term policy remains the same and will continue as it is. Being an additional coverage, the rider provides coverage only when the policyholder meets the specific condition. However, the base policy will still continue to provide life coverage.
Suppose a term insurance plan has a maximum tenure of 30 years. In that case, the coverage will continue till a maximum period of 30 years if the claim against the selected crucial illness is made. A rider, once added, cannot be added again to the ongoing policy of the term insurance.
The policyholder's term policy may sometimes terminate as per the conditions listed by the time insurance plan. There is no impact of the critical illness rider claims over the assured sum in the base policy.
In the case of policies that provide a waiver of the premium option, it will help in removing all the future premiums of the life insured.
Also, if the policyholder and the spouse take a joint policy, the future premiums will be removed for life insured diagnosed with any critical illness.
Critical illness riders prove beneficial when the policyholder is diagnosed with any form of critical illness for the first time. In such cases, the riders are added over to a base policy and provide the insured with protection during times of emergency. However, once the claim is made, the rider terminates, but the base policy continues to cover the life assured.
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