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

Features of Critical Illness Rider

The following are the key features of the critical illness rider offered with term insurance plans:

1. Lump sum coverage amount paid on the diagnosis of a critical illness, regardless of actual expenses incurred for the treatment.
2. Coverage is applicable for the diagnosis of any critical illness listed in the policy. The list may vary from insurance company to insurance company. It is important to check the list before you avail yourself of the coverage.
3. Critical illness rider benefits can be claimed only once in a lifetime. The rider cover expires as soon as the insured makes a claim.
4. A rider claim can have an impact on the base coverage of a term insurance policy. Some insurance companies may reduce the base term cover, and some may not, depending on the terms and conditions of the policy.
5. There is a minimum survival period of up to a month post-diagnosis to avail the claim benefit.

Why Should You Consider a Critical Illness Rider With a Term Insurance Plan?

Here are some of the important reasons that make critical illness cover an important rider with a term insurance plan:

Provides both medical and non-medical cover

Health insurance policies provide financial protection for medical emergencies, which are whenever the insured is hospitalised. But the critical illness rider goes beyond that, gives a lump sum benefit which can be used as per the insured’s need at that time. Critical illnesses require prolonged treatment, and treatment expenses are not generally covered under the regular health insurance plan. Critical illness rider cover can be utilised for the following during the journey to recovery:

• Treatment expenses
• Post-treatment therapy expenses
• Accommodation and travel expenses incurred during treatment in another city or country
• Income loss during the period.

Rising lifestyle diseases and medical inflation

Today’s sedentary lifestyle, stressful work culture, poor diet and lack of exercise are the leading causes for the increase in lifestyle diseases. If we go by World Health Organisation (WHO) data, more than 60% of deaths in India are caused by non-communicable diseases like diabetes, cardiovascular illness, cancer, etc. These illnesses generally require prolonged treatments that are typically expensive. The average cost of treatment for the most common cancers, like breast cancer, is approximately INR 8,50,000 in the initial stages. Cost may go up depending on the therapies.

Considering the rising cost of medical inflation and the potential risk of lifestyle diseases, a critical illness rider is an important consideration along with your term insurance cover.

Cost-effective option

Critical illness riders with term insurance plans are relatively affordable than the standalone critical illness health insurance plans. However, there will be a difference in coverage. Standalone policies offer much broader coverage.

Before you avail the rider, ensure to go through the terms and conditions of the coverage and the term insurance policy. It is also important to understand the claim process to avoid rejections in the future. At Jio Insurance Broking, you can compare term insurance policies from various insurance companies and check on the critical illness rider from various providers to make a rational decision.

Conclusion

To sum up, no one wants a major health crisis in life, but it is important to be prepared for the unpredictability of life. Situations like a diagnosis of terminal illnesses not only take a heavy toll on the emotional well-being of the family, but also leave an additional financial stress. Availing a critical illness rider with a term plan at a modest extra premium is a wise financial decision. It gives a financial cushion during an unexpected health crisis and provides peace of mind.