Importance Of Critical Illness Rider With Term Insurance Policies

Term insurance products protect your loved ones' financial future by guarding them against life's risks. The risks could range from a loss of income to severe sickness or the unexpected death of a loved one. In the event of such unforeseen situations, a term plan might help provide a financial cushion. 

The weight of a loved member being diagnosed with a serious illness weighs heavily on the family. When a family's primary caregiver is diagnosed with a serious disease, the situation becomes much more difficult. As a result, it's necessary to plan for times like these, and critical illness coverage should be included in your term plan. When you get term insurance, you can choose to extend your coverage by paying a slightly higher cost, giving your family and yourself greater protection.

What is a Critical Illness Rider?

Critical illness insurance covers serious and long-term illnesses that frequently necessitate costly medical treatment. Cancer, kidney disease, heart disease, paralysis, third-degree burns,  limb loss, liver disease, and other conditions may be covered. The coverage given is a reliable solution to ensure the peace of mind of you and your loved ones. The policy normally says that if a serious illness is diagnosed, the insurer will make a lump sum payout.

What is the Importance Of Critical Illness Rider With Term Insurance Policies?

Here are five reasons why you should get this important add-on.

1. Income Replacement

When the family's sole earner is diagnosed with a major illness that prevents him or her from working and earning, the patient and family members are put under a lot of stress. It is prudent for you, as the policyholder and family provider, to plan for this eventuality. Your family doesn't have to worry about balancing household costs and paying for your therapy. The critical illness insurance will replace your income, giving your family time to get their affairs in order while you focus on getting better.

2. Taking Care Of High Medical Costs

With healthcare expenses in India on the rise, each disease results in hefty medical fees for the patient and their family. The costs are enormous, from hospitalisation to costly testing and medication. The lump-sum payment at the time of diagnosis relieves you and your loved ones of the stress of trying to raise money for your treatment. If you combine your term plan with critical illness coverage, the lump sum payment will go a long way toward covering your medical expenses.

3. Concentrate On Getting Better

You can spend all of your energy on recovery when you don't have to worry about medical costs or lost income. You can obtain the greatest treatment possible, whether it's physiotherapy or rehabilitation programmes to help you heal, and you can work on getting physically stronger without worrying about financial obligations. When people don't have enough money to cover their medical expenditures, they are compelled to borrow or take on debt. Many people are forced to stop receiving treatment because they cannot afford it. You can avoid these situations by purchasing a critical illness policy in addition to your term plan.

4. The Premium Does Not Change

When you choose the critical illness cover benefit with your term plan, the insurance price stays the same throughout the term. Your premium will not increase if you are diagnosed with a critical disease during the policy's term because this was already factored in during the premium calculation.

5. Additional Tax Benefits

You can also gain additional tax savings if you combine your term plan with a critical illness policy. Section 80C of the Income Tax Act of 1961 covers term plans, but Section 80D of the act exempts tax on critical illness insurance riders. 

Take Away

The added security that critical illness insurance provides for you and your family is extremely valuable. It is impossible to foresee what will happen to whom and when in today's fast-paced society. The only thing you can do is prepare for anything that could go wrong. Your first step toward a stress-free future can include critical illness coverage in your term plan insurance.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.