Standalone Policy vs Critical Illness Rider - What to Choose?
Updated On Apr 12, 2021
When it comes to choosing health insurance, there are a plethora of options available in the market. Not everyone is well aware of the nitty-gritty of insurance, and sometimes it becomes tough to make the best choice. When choosing health insurance, one of the most important factors to keep in mind is that of critical illness.
Did you ever think what could have happened in case you suffer from a critical illness that can not only leave you jobless but could also impact your family's financial status harshly? Well, if in life you have to face any such situation, then a critical illness plan is the answer to your question.
Individuals, who are suffering from deadly diseases are made to face financial difficulties because of high end healthcare costs and no source of income, therefore critical illness plan acts as a saviour during the times of medical emergencies. An insured individual receives a tax-free lump sum amount in the event of getting diagnosed with any critical illness such as heart attack, paralysis, kidney failure, etc.
Standalone Policy V/S Critical Illness Rider
Critical illness is a life-threatening disease or medical condition which involves ever-increasing medical costs. These include ailments like cancer, organ transplant, third-degree burns, heart attack, coma of specified severity, end-stage kidney failure, multiple sclerosis, etc. Sudden incidence of critical illness can lead to financial hardship and loss of income. Apart from physical pain and mental agony, it can eat up your lifelong savings.
Therefore, health insurance for critical illness is a must to provide support in the wake of a dire medical emergency. Critical illness cover is offered in two options - standalone policy and critical illness rider. A standalone policy is a plan that provides comprehensive coverage for critical illnesses. The critical illness rider is an optional add-on feature you buy along with your health insurance policy. Both standalone policy and rider provide coverage against critical illnesses. The choice between the two depends on one’s requisites.
Difference between a standalone policy and health insurance with critical illness rider:
|
Factors |
Standalone Critical Illness Cover |
Critical Illness Rider |
|
Coverage |
Provides comprehensive coverage |
Coverage depends on the base policy on which you are opting for a rider |
|
Sum assured |
More flexibility with regards to the sum insured |
Cannot exceed the coverage amount of the base policy |
|
Medical test |
A medical test is required |
No medical test is required if the rider is bought on the base policy |
|
Policy renewal |
Has to be renewed every five years |
Renewed along with the base policy. No need for separate renewal. However, if the base policy becomes invalid, the rider also stands invalid |
|
Number of diseases covered |
Covers more than 20 life-threatening and lifestyle-disabling diseases. For e.g. Apollo Munich Optima Vital covers 37 critical illnesses |
Varies from one insurance provider to another, though generally 8-10 ailments are covered |
|
Premium |
Premium changes as per the age and health conditions of the policyholder |
It remains the same for the duration of the base policy. Thus, it is on a bit cheaper side |
|
Tax benefit |
Section 80D benefit is available for standalone critical illness policies |
Tax benefits under Section 80C/80D available on the premium paid for riders |
|
Waiting period |
There is generally a waiting period of 30 to 90 days before the coverage starts |
In the case of the rider, the critical illness gets covered from day one |
So, if you are still confused about what to opt for, standalone policy or critical illness rider? The answer depends on your health condition and requirements. If you want to purchase a policy with better coverage for critical illnesses, the standalone critical illness cover is the answer. Also, given the expenses one incurs on the treatment of critical illness, the higher coverage is better. However, if you are okay with less coverage and looking for an add-on feature on a cheaper side, then a critical illness rider will be the best. InsuranceDekho can assist you to make an intelligent decision against critical illness protection and help you choose the best health insurance policy as per your requisite.
