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Why Critical Illness is Important with Term Insurance

February 07, 2019
A term insurance plan is a popular and most sought after product these days when it comes to insurance in India. As it offers a higher sum assured, most people prefer it over a general life insurance plan. However, if there is an add-on cover to your term plan, your life becomes easier. When we say an add-on cover, it is basically riders that offer enhanced protection. A rider either comes included in your term insurance plan or you may have to opt for it. Depending on your needs, you can opt for the best rider that meets the requirements.

Now riders can be of different types depending on your plan but when it comes to a term plan, critical illness rider becomes pertinent. Why? Let us explain in detail.

What is a critical illness rider?

The critical illness rider becomes a must while buying a term insurance policy. A critical illness rider provides extra financial assistance at the time of any medical emergency. A critical illness can come unannounced, hence having a rider helps in dire circumstances.

Why you must have a Critical Illness Rider?

  • This acts as an income replacement.
  • The policy holder does not need to spend extra cash as the premium stays the same.
  • With this add-on, you can avail double tax benefit.
  • It provides you add-on coverage that can take care of medical and day to day expenses.
  • It provides coverage for all the major diseases like- heart attack, cancer, paralysis, coronary artery bypass surgery, major organ transplant, stroke, kidney failure etc

How Critical Illness Rider Works?

Under this rider, the insured receives a lump-sum on the diagnosis of critical illness already specified in the policy. According to the policy terms and conditions, detection of critical illness may either continue or terminate. Hence, it is important to check the coverage carefully prior to choosing the ride. A lot of insurance companies are coming up with innovative critical illness rider that include lifestyle disease as well.

Apart from this, the insured can also take benefit of hospitalization and non-hospitalization expenses.

Things to consider while buying critical illness rider

  • If the maximum tenure of the term plan is 30 years, then the coverage continues even after claiming benefit.
  • You can save on taxes under section 80 C and 80D of income tax act.
  • The benefit amount payable is equal to the critical illness cover that the policyholder has chosen.
  • The total sum assured amount as chosen under the plan is payable in case of demise or total permanent disability of the insured.
  • There is no minimum survival period and the benefit is paid immediately based on the first diagnosis itself.
  • The claim can be settled within 21 days of receipt of all the necessary documents.
  • By paying premiums in installments, the insurance buyer can easily avail the policy online.

If you have understood all the details of a critical insurance rider, head to HDFC Life and figure out the combi plans that suit your needs the most and efficiently. For details click on the mentioned link: https://www.hdfclife.com/homepage.


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