Tuesday, September 26, 2023

Importance of Opting for Critical Illness Cover with Your Term Insurance Plan

Term insurance plans present you with a pure life cover that safeguards your family and provides financial cushioning. But various unfortunate conditions do not get covered by the policy leading to claim rejection. One of such situations is getting diagnosed with a critical illness. Many term plans do not cover major ailment and thus, there are no benefits available under such circumstances. But you can definitely get it covered by purchasing a critical illness rider. Before you doubt it, let’s understand more about this insurance rider and why you should have it along with your plan.

What Is a Critical Illness Rider?

A rider is an add-on benefit that can be included in your base term policy. This insurance rider offers an advantage during particular unfortunate conditions like accidental death, loss of income, and permanent disability amongst others. The rider benefit is over and above the basic insurance cover. You can choose a critical illness benefit rider to cover major illnesses and disorders. Such a rider will provide for extra financial assistance in case of a medical emergency. An illness can come unannounced and this is when a critical illness rider helps. Under the insurance rider, you will receive a lump sum on the diagnosis of a critical illness mentioned in the policy.

How does Critical Illness Rider Work?

After the major ailment covered by the critical illness rider gets diagnosed, a lump sum amount assured under the plan is presented to the policyholder. You can then begin with the treatment for the illness now that you have received the benefit. It is not mandatory to spend the entire amount on the treatment. Instead, you can also opt to pay off your EMIs, rent and other such expenses from the remaining sum.

But it is advised to go through the terms and conditions of the rider policy so that you aware of the ailments covered. Also, many insurers have a survival clause which needs to be satisfied before the claim is settled.

Benefits of Life Insurance with Critical Illness Benefit Rider

Life insurance with critical illness benefit rider has numerous advantages to offer. Here are some of them:

1.   Multiple Illnesses are Covered

Most insurers cover a number of major illnesses such as cancer, tumour, disability, blindness and Alzheimer’s Disease amongst others. Due to the wide range of coverage, you are secured from adverse situations.

2.   Savings Remain Safe

In case you had no critical illness cover, you would have to dip into your hard-earned savings for the treatment. With the ever-increasing medical expense, even a mere ailment causes your savings to vanish. Covering the cost of critical illnesses which can also put you out of employment is not possible. The rider benefit turns into a life-saver as the lump sum amount can pay for the illness as well as other expenses.

3.   Affordable Premium

You might believe that the premium quote gets increased by adding an insurance rider. But it really doesn’t cost much in comparison to the coverage it can provide in the future. Also, the premium price does not change over time and remains stable throughout the policy term.

4.   No Medical Check-up

If you are worried about the critical illness rider mandating a medical exam, it surely doesn’t ask for one. Except for the medical test done before purchasing the insurance plan, no other medical tests are required to buy the rider. So you can add this insurance add-on feature without a problem.

You can combine the critical illness rider to your term policy at the time of purchase itself. There are various term insurance premium calculators available online to help you determine the premium quote after adding the rider. Protect yourself from unforeseen ailments and stay secured with a critical illness rider!