Term Plan with Critical Illness and Disability Rider

These riders can enhance the coverage of your term life insurance and protect you against a variety of critical illnesses and disabilities. Let us learn more about these riders and take a look at some of the plans that offer these add-ons.

What is Term Plan with Critical Illness and Disability Rider?

Term insurance with disability riders and critical illness rider is a type of life insurance policy that provides financial protection to the policyholder and their family in the event of policyholder’s death, disability, or critical illness. You can do this by including critical illness and ATPD (Accidental Total Permanent Disability) riders in your base term plan while buying term life insurance. 

The policy offers a death benefit to the nominee/beneficiary in case of the policyholder's death during the policy term. In addition to the death benefit, the critical illness rider provides a lump sum payout if the policyholder is diagnosed with a critical illness, such as cancer, heart attack, stroke, etc. The term insurance with disability rider provides financial support if the policyholder becomes permanently disabled due to an accident or illness. The payout from these riders can be used to cover medical expenses, daily living expenses, and other related costs. The policyholder pays a premium for the coverage, and the premium amount depends on the policy term, coverage amount, and the policyholder's age and health status. 

Why Do You Need Critical Illness and Disability Rider on Term Insurance?

A Critical illness and disability rider on term insurance provides additional protection to the policyholder and their family in case of an unfortunate illness or disability. Here are some of the reasons why you may need a critical illness and disability rider on your term insurance plan: 

• Financial Protection: A critical illness or disability can result in high medical expenses and loss of income due to the inability to work. A rider can provide a lump sum payout that can help cover these costs and support your family during a difficult time.

• Additional Coverage: A term insurance policy provides a death benefit to the nominee or beneficiary in case of the policyholder's death, but it does not cover critical illnesses or disabilities. A rider can provide additional coverage for these unexpected events.

• Affordable Premiums: A critical illness and disability rider on term insurance is often more affordable than a standalone critical illness or disability insurance policy.

• Peace of Mind: Knowing that you and your family are protected from the financial impact of a critical illness or disability can provide peace of mind and reduce stress during a difficult time.

• Tax Benefits: A term plan with critical illness and disability rider can provide tax benefits under section 80D as well on top of the regular tax benefits under sections 80C and 10(10D).

• Multiple Payout Options: The critical illness and disability rider on term insurance pays out in case of an eventuality to the policyholder as per the policy details. Therefore you should go through the available options in your term plan and select the most suitable payout option. You can choose to receive the rider sum assured in a lump sum, monthly income, or a combination of lump sum and regular income.

What is Covered under Term Plan with Critical Illness and Disability Rider?

Let us see the general list of conditions covered under the most common term insurance riders: critical illness and disability riders. It is important to note that the list of conditions covered differs with the different plans. Therefore you should always go through the policy documents to get a clear idea of all the inclusions and exclusions under the term rider benefits offered.

• Critical Illness Rider
  The term insurance with critical illness is an add-on benefit that can be added to the base term plan to increase its coverage. Under this term rider, on the diagnosis of any of the listed critical illnesses, the insurance provider will pay out the rider sum assured to the policyholder. You should always go through the list of critical illnesses covered and compare term insurance online before purchasing the plan with the most comprehensive coverage.
  Some critical illnesses that are commonly covered by various term insurance plans are:

  • Heart Attack

  • Heart Valve Replacement due to defects or abnormalities

  • Coronary artery diseases requiring a bypass or other surgery

  • Aorta surgery 

  • Stroke

  • Cancer

  • Kidney failure

  • Viral Hepatitis

  • Liver Failure

  • Major Organ Transplant including Kidney, Lungs, Liver, Heart and Bone Marrow

  • Paralysis

  • Multiple sclerosis

  • Primary Pulmonary Arterial Hypertension

  • Alzheimer’s Disease

  • Coma

  • Terminal Illness

  • Anaemia

  • Diabetes

  • Brain Surgery etc.

• Accidental Total Permanent Disability Rider
  The accidental total permanent disability rider on term insurance protects the policyholder in case of a disability due to accidental reasons. In case of a disability, the policyholder will be kept under observation for 180 days from the date of the accident, if after this period it is found that the disability is irreversible, only then the rider sum assured will be payable.
  Disability riders are provided for common disabilities under all Insurance plans. They are:

  • Permanent Blindness

  • Leprosy

  • Deafness

  • Paralysis

  • Dwarfism

  • Intellectual Disability

  • Mental Illness

  • Autism Spectrum Disorder

  • Cerebral Palsy

  • Muscular Dystrophy

  • Parkinson’s Disease

  • Dystonia

  • Neuromuscular disease

  • Multiple Sclerosis

  • Epilepsy

  • Thalassemia

  • Haemophilia

  • Sickle Cell Disease

  • Acid Attack Victims

Best Term Insurance with Critical Illness and Disability Rider in India

Let us take a look at some of the best term plan with critical illness and disability rider in India.

1. ICICI Pru iProtect Smart

   • The plan offers 4 benefit options for you to choose from

   • The plan provides comprehensive coverage against terminal illness, death, and disability

   • You can pay the premiums in a single, regular, or limited policy term

   • You can increase the sum assured with life stage protection option at different life stages

   • Choose to receive the payout in a lump sum, income, lump sum + income, and increasing income

2. HDFC Life Click 2 Protect Super

   • Choose from 3 plan options: Life, Life Plus, and Life Plus Goal

   • You can opt to receive all the premiums back with the plan’s ROP option

   • The plan provides the option to receive the benefit amount in installments

   • Cover your spouse under the plan with its Spouse cover option

   • Select the most suitable term riders to enhance the policy’s coverage

3. Max Life Smart Secure Plus

   • You can choose from 2 base cover options: Life cover or Increasing life cover

   • The plan offers the option of receiving the payout in lump sum, monthly income, or a combination of both

   • You can exit the plan early and receive all the premiums paid with the special exit value

   • You can increase the sum assured with the voluntary top-up option

   • With the return of premium option, you can receive all the premiums paid at the end of the policy term

4. Canara HSBC Life iSelect Smart360

   • The plan provides the rider sum assured on opting for the rider benefits in the base term plan

   • The Child Care Benefit offers extra life cover till the child reaches 21 years of age

   • Choose from 2 life cover options: Level cover or Increasing Cover as per your suitability

   • Choose from in-built covers such as Critical Illness, terminal illness, and accidental death benefit

   • Select from 3 plan options: Life Secure, Life Secure with Income, and Life Secure with Return of Premium

5. Tata AIA SRS Vitality Protect

   • The plan offers an inbuilt wellness solution program, Tata AIA Vitality Protect 

   • You have the option of choosing between level Term or TROP (Term Return of Premium) plans

   • The plan provides an additional 5% guaranteed discount for the first year premiums

   • You will be eligible to receive free health checkups every year

   • The Tata AIA Vitality wellness status can provide up to a 15% Renewal Premium Discount and Cover Booster

6. PNB MetLife Mera Term Plus

   • The plan offers 3 benefit options: Life, Life Plus, Life Plus Health

   • You can get your spouse covered under the same plan with the spouse cover option

   • You can choose to receive all the premiums paid with the ROP option of the plan

   • Choose to receive the payout as a lump sum, monthly income, or lump sum and monthly income

   • Enhance the plan’s life cover with the Step-up benefit, life stage benefit, and child education support benefit

7. Edelweiss Tokio Total Protect Plus

   • You will receive an additional 6% discount on the first year premium if you submit the medical test within a week of the policy purchase

   • You can cover your spouse within the same plan with the Better Half Benefit

   • You can extend the policy term to cover for whole life i.e. till 100 years of age

   • The Child’s Future Protect Benefit can provide an extra life cover during your child’s growing years

   • Choose from any of the 5 riders to enhance the plans’ coverage

Final Thoughts

The term insurance add-on benefits, critical illness and disability riders, allow policyholders to enhance their base term plan’s coverage at low premiums. This way customers can get comprehensive coverage within a single plan for a long policy tenure. A term plan with critical illness and disability rider can protect the policyholder in case of an unforeseen event like the diagnosis of a critical illness or disability due to accidental reasons.