Why Should You Buy Critical Illness Cover Even after Buying Term & Health Insurance?

When it comes to insurance in India today, term insurance plans are one of the most popular and sought-after products. Most individuals prefer it over a standard life insurance plan because it offers a bigger sum assured. Your life will be made easier if your term plan includes add-on insurance, though. When we refer to an add-on cover, we essentially mean riders that provide more protection. It is a good idea to have a backup plan in case you need to make a change. You can choose the best rider who satisfies the requirements based on your demands. 

So, depending on your plan, riders can be of various types, but when it comes to a term plan, a critical illness rider becomes important. Why? Let’s get into more detail.

What is a rider for a serious illness? 

Purchasing a term insurance coverage becomes impossible without the critical illness rider. Any medical emergency is supported financially in addition to a critical sickness rider. Having a rider is helpful in emergency situations because a catastrophic disease might strike without warning. *

Why is a Critical Illness Rider necessary? 

This serves to replace lost income. The premium remains the same. Thus, the policyholder does not need to pay additional money. You can receive a double tax benefit with this addition. It offers you supplemental insurance that can cover both your daily expenses and medical costs. *

How Does a Critical Illness Rider Work? 

It offers coverage for all major ailments, including heart attack, cancer, paralysis, coronary artery bypass surgery, major organ transplant, stroke, kidney failure, etc. 

When a critical illness that is already covered by the policy is diagnosed, the insured is paid a lump payment under this rider. The policy’s terms and conditions provide that critical disease detection may either continue or end. So, it is crucial to carefully review the coverage before selecting the ride. Many insurance providers are developing creative, critical illness riders that also cover lifestyle diseases. 

Also, the covered person may gain from hospital and non-hospital expenses. 

Considerations for purchasing a critical illness rider 

The coverage remains even after receiving benefits if the term plan’s maximum duration is 30 years. 

Sections 80C and 80D of the Income Tax Act allow you to reduce your tax liability. **

In the event of the insured’s passing or complete and irreversible handicap, the total sum assured amount selected under the plan will be paid. 

The earliest possible date for the start of the project is the end of the first quarter of 2019. 

The claim can be resolved within 21 days of receiving the required paperwork. 

The insurance customer can quickly and conveniently purchase coverage online by paying the payments in instalments. A health insurance premium calculator is a tool you may use online to determine the amount of coverage required based on your needs.

Purchasing critical illness coverage is an essential investment for individuals, even if they already have term and family health insurance plans.

While health insurance covers medical expenses and term insurance provides financial protection to your family in case of your untimely demise, critical illness insurance provides financial support when you are diagnosed with a critical illness.

This family health insurance plan will ensure that you have adequate funds to cover expensive treatments, hospitalisation, and loss of income due to your inability to work. The peace of mind and financial stability provided by critical illness insurance is crucial in times of stress and uncertainty.

Therefore, it is recommended that individuals evaluate their insurance needs and consider purchasing critical illness coverage to supplement their existing health insurance plan coverage.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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