Importance of Critical Illness Rider with Term Insurance Plan

In India, term insurance policy is the most popular and in-demand product when it comes to insurance. Its assured higher sum makes it a popular choice over an ordinary general life insurance policy. 

It makes your life easier when you have an add-on cover to a term plan. When we mention an add-on cover, it generally refers to the riders that provide extra protection. 

A rider can either be bundled in your term insurance policy, or you may opt for it. Depending on your needs, you can select the best rider that suits your needs.

What is a Critical Illness Rider?

An important insurance add-on is the critical illness rider, which assists the policyholder financially if they develop any critical illness during its validity. Term insurance, along with Critical Illness cover, shields the policyholder from multiple serious ailments like kidney failure, stroke, or cancer. This rider supplements the base term plan by providing coverage for cancer of a defined degree, heart attack, and other severe illnesses included in the term cover.

CIR benefits financially cover the policyholder & their family members by releasing a nominal sum upon diagnosis of critical disease with payout as a lump sum. It can be easily bought when the policy is initiated or on any anniversary of the base plan.

How Critical Illness Rider Works?

Under this provision, the insurance holder gets a lump-sum payment upon diagnosis of any critical illness specified in the policy. Critical illness detection may either continue or stop under the terms and conditions of the policy. 

Therefore, the coverage should be checked in detail before choosing to ride. Many insurance companies are also launching innovative CIRs, which include lifestyle diseases. 

Other than this, the insured can also avail of hospitalization and non-hospitalization costs.

Things to Consider When Purchasing Critical Illness Rider

  • If the maximum plan period is of a term type for 30 years, then even after claiming benefit, coverage continues.
  • You can save taxes under sections 80 C and 80D of the Income Tax Act.
  • The entire sum assured amount opted for in the plan shall be payable upon death or total permanent disability of the insured.
  • The benefit is paid based on the first diagnosis, and there is no minimum survival period.
  • The claim can be closed after receiving all the required documents within 21 days.

Why is a Critical Illness Benefit Required?

Being financially secure, term insurance, along with critical illness coverage, provides the best treatment possible without you being worried about your medical bills if you are diagnosed with severe disease as a policyholder. 

Several variables influence premium rates for this rider as several assets are included, including age, medical history, and the amount covered. Some benefits are:

  • Lump sum payment without deductions: On the diagnosis of one of these diseases in the plan, you can claim instant lump sum payments with no hidden charges and spend that money on getting medical attention.
  • Coverage for medical expenses: Use the payout without restrictions of any kind to cover all expenses related to a medical issue, including hospitalization, ambulance charges, the cost of medicines, room rent, etc.
  • Income replacement: If you lose the ability to work and make money, term insurance with critical illness benefits will replace your income. This money can meet quite a few needs and requirements.

The Bottom Line

Ultimately, choosing the term plan and critical illness rider wisely is a rational financial move. It offers an additional level of safeguard by offering financial assistance in case a major health foible occurs ensuring total coverage for both mortality and critical conditions. 

This dual protection not only ensures your family’s future but also guarantees restful sleep. Contact PNB MetLife for more information on the term plan as it is a good investment in ensuring overall well-being.

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