A rider cover can be added to the existing term insurance policy with an additional cost. Critical Illness Rider is a good choice if someone is willing to get higher coverage.Read more
*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 insurance policy is usually recommended for the sole-bread-earner of the family, where a death benefit is ensured in case of a sudden demise of the insured. A critical illness rider policy comes in handy in covering the medical expenses incurred due to health conditions arising out of a critical illness. A regular term insurance policy doesn’t cover the life assured for the same, thus it is highly advised to have a rider cover like critical illness rider.
Major critical illnesses like cancer, stroke, heart attack, kidney failure, and other diseases are covered under this policy. However, the policyholder is given with the list of critical illnesses that are covered.
A Critical Illness Rider or Benefit is a generally available as an add-on that makes term plans more comprehensive. However, a critical illness cover may also be offered as a standalone plan by some providers. The critical illness riders are primarily of two types; accelerated and non-accelerated critical illness benefit. In accelerated critical illness rider, there might be a reduction in death benefits (as in the base policy) on the payment of the rider benefit. In the case of non-accelerated critical illness cover, the benefits of the rider are not based on the sum assured upon death. Thus, there is no effect over the death benefits on the benefit of critical illness.
In case a plan holder is diagnosed with any of the illnesses mentioned in the policy, the Critical Illness Rider comes it to action. It provides a lump sum amount based on the severity, irrespective of the stage of the disease. Major diseases such as cancer, paralysis, kidney failure, heart attack, stroke, heart failure, organ transplant, bypass surgery and lung diseases are a few general inclusions in this list. As per the terms and conditions of the policy, the cover can continue or terminate upon detection of critical illness.
Let’s say, a person has a term insurance cover of Rs 1 crore. Along with that, he has a critical illness rider of Rs 20 lakh. If the person is then diagnosed with a critical illness, only the assured amount for the critical illness rider will be paid which is Rs 20 lakh.
Some of the amazing benefits of availing this rider are:
A term insurance plan with a critical illness rider offers a range of benefits to the plan holder, such as:
The term plan with critical illness rider however doesn’t include every medical expense. The claim cannot be benefitted and gets rejected under certain conditions:
While purchasing a term insurance policy, individuals have an option to select from various additional rider options such as accidental death rider, an accidental disability rider, critical illness rider, etc. One can easily customize their term plan by selecting the critical illness rider option to keep themselves covered against life-threatening diseases.
Some points to keep in mind before opting for a Critical Illness Rider:
With the increase in the number of deaths due to critical illnesses, it is inevitable to avail a rider plan such as critical illness cover to stay financially protected. These policies work as a financial shield throughout the tough times and boost the basic policy coverage.