Term Insurance with Critical Illness Riders: What You Need to Know?

Understanding Term Insurance with riders like Critical Illness:

A term insurance plan with a critical illness rider is when you purchase a term insurance policy and add a critical illness rider to the ground policy. This add-on not only enhances your policy coverage but also helps you claim an assured amount in case you're diagnosed with a critical illness like cancer, stroke, and more, as mentioned under the plan. The assured payout under the rider can be used for ambulance costs, medicine expenses, and much more, depending on the plan you have opted for.

Typically, you may choose to add the rider while purchasing the policy itself. However, it can be added at any time during the policy tenure. Also, bear in mind that you will have to pay a little extra for the extra coverage.

What are the Benefits of Critical Illness Riders?

Now that you've read what a term insurance plan with critical illness riders is, the next question is: Are these policies worth it? Well, why not consider reading about the benefits of these critical illness riders and then decide accordingly?

Better Prepared for Life

When you consider choosing term insurance plan with a critical illness rider, you choose to remain stress-free of the treatment expenses even when you're diagnosed with some critical illness. With a critical illness rider, you immediately receive a lump-sum amount in one go, which can be used for prescriptions, surgery, medical bills, and whatnot.

Your Medical Bills are Covered

When struggling with a medical situation, you already have a lot to go through, physically and emotionally. In that scenario, you would not want to worry about medical expenses and compromise the treatment quality. A critical illness rider can help you tackle such issues, covering hospitalisation, consultation, and other related charges to ensure your top-notch treatment and improve your chances of survival.

Your Lost Income is Replaced

The lump sum amount provided by the rider can also be used as a supplement income or income replacement in case of loss of income caused by your critical illness. You may use the assured payout to manage your monthly bills, rent, etc.

You Enjoy Tax Benefits

The term insurance plan itself offers tax benefits under sections 80C and 10(D) of the Income Tax Act of 1961. Now, when critical illness riders are added, you can further claim tax benefits U/S 80D, offering dual tax advantages.

Term Insurance Plan with Critical Illness Rider: Who is it for?

Now, anyone can consider buying term insurance plan with a critical illness rider to ensure they are well-prepared to deal with medical emergencies. Here is a list of people who can make the most out of these plans:

1. If you're an individual with a family history of critical illness.
   
2. If you're an individual who isn't able to save a fixed amount regularly.
   
3. If you're the primary earner of the family.
   
4. If you're 40 years or above.

Term Insurance Plan with Critical Illness Rider: What Does it Cover?

The diseases covered under critical illness health insurance vary from one insurance company to another. Therefore, before you finalise your insurance, make sure to quickly review your insurer's list of diseases covered under the critical illness rider. Here are some common diseases that are generally covered:

• Cancer

• Kidney failure

• Liver failure

• Stroke

• Brain tumour

• Parkinson's disease

• Muscular dystrophy

• Permanent paralysis and more.

Remember: Make sure to cross-check the list and see what is covered and what is excluded to make an informed decision.

Factors to Consider While Buying Term Insurance with Riders like Critical Illness:

There are a variety of term insurances with critical illness riders. Amidst all the options available, choosing the policy that best matches your requirements may feel overwhelming. Worry not; consider looking at these factors while buying term insurance to ensure you pick the best critical illness riders.

Types of Diseases Covered

Before you choose the plan, make sure to thoroughly review the policy document and see the list of diseases covered. Also, check if the covered diseases suit you and your stressful living patterns. Read about the medical treatments, surgeries, and other options available with the rider.

Survival and Waiting Period

One of the most important aspects of a critical illness rider is survival and the waiting period. The survival period is the minimum time the insured must live after diagnosis to claim benefits, while the waiting period is the initial duration before coverage for critical illnesses begins.

Make sure to check these carefully and see if they are practical for you. Carefully read the terms and regulations to not miss out on anything important.

Payable Premiums

Premiums are an important part of any plan. See if the premiums on your rider and base plan are cost-effective and align with your financial goals. You can easily compare different plans and their features and benefits on Jio Insurance Broking. Further, you can also get assistance in choosing the most suitable plan for yourself that matches your needs and budget.

Wrapping Up

Given how busy and stressful life we are living, having a critical illness rider ensures your quality treatment if anything goes wrong with your health. When bundled with term insurance, you can use the plan for death benefits, too. The premiums are affordable, and the benefits are several. Wait no more, and consider checking suitable term insurance plans with a critical illness rider for comprehensive protection of yourself and your family.