Here’s how adding a critical illness rider to your life insurance policy can help.
Updated On Oct 28, 2022
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A fairly common life insurance rider that can help a person maintain their family's financial stability in trying times is the critical illness rider. The insurance policy coverage can be expanded with a critical illness rider in exchange for an additional premium. A lump sum payment is made to the life assured's family under the critical illness rider in the event that the life assured develops one of the listed critical illnesses while the policy is in force.
Critical illness insurance rider offers r protection against serious, life-threatening conditions like cancer, tumours, heart problems, kidney failure, etc. This rider helps the spouse of the insured person with the costs of the diagnosed sickness and offers financial support during the trying times.
What is the Meaning of Critical Illness Rider?
In the event that a critical illness is discovered while the policy is in effect, a the rider is of great help, aiding the policyholder financially. A major illness is a condition that poses a serious risk to life, including cancer, strokes, kidney failure, etc. An improved level of protection against certain types of cancer, open chest CABG, the first cardiac arrest, kidney failure, stroke, and other critical illnesses is provided by a critical illness rider.
The rider offers a lump sum payment upon the diagnosis of a critical illness, protecting the insured and their family financially. The money collected can be put toward paying for the identified illness's medical care. The critical illness rider enables the life guaranteed get their medical bills taken care of without stressing about economic stability or sacrificing on the quality of treatment owing to lack of finances by providing extra coverage at a minimum additional cost.
The basic policy's first policy anniversary or any later policy anniversaries allow for the purchase of the critical illness rider. Again when the rider's sum assured has indeed been paid or when the rider's policy term has expired, whichever comes first, the rider comes to an end.
Reason to Add Critical Illness Rider
The price of medical care has skyrocketed recently. Being sick may be financially devastating as well as physically and mentally traumatic. A recent study found that, cancer deaths accounted for roughly eight percent of all deaths in India. The majority of people cannot afford the necessary medications and treatments.
A Critical Illness Protection Rider must be purchased in order to cover these rising expenses. An insurance plan with a critical illness coverage will pay for both hospital and out-of-pocket expenses. By giving the much-needed financial flow, it benefits the policyholder and their family.
Documents Required to Add Critical Illness Riders
Documents that must be submitted while registering a critical illness rider include:
- Authentic Policy Documents
- Claim Form Completed
- Proof of Photo ID for Policyholder
- Proof of Policyholder's Address
- Health Test Results
- Reports from the medical profession Attending physician's certification
- Copy of a bank statement or cancelled check
Conditional Rider Exclusion
Under the critical illness rider, some significant exclusions include:
- Already existing illness
- Congenital Illness
- Involvement in conflict, rioting, or other acts of revolt
- Suicide attempt or self-inflicted injuries
- Involvement in criminal activity
Critical Illness Rider is a decision rather than a requirement. If you are certain that purchasing a critical illness rider for your term insurance policy would significantly benefit you, do so.