Benefits of Purchasing Critical Illness Rider in Insurance

The weight of a severe disease diagnosis weighs hard on a family's members. When a family's primary caregiver is diagnosed with a life-threatening disease, the situation becomes much more difficult. As a result, it's critical to budget for unexpected events, and critical illness coverage should be included in your term plan. Critical illness insurance covers serious and long-term illnesses that often necessitate costly medical treatment. Cancer, heart disease, kidney disease, paralysis, third-degree burns, liver disease, limb amputation, and other conditions may be covered. The coverage provided is a surefire way to ensure the peace of mind of you and your loved ones. On the diagnosis of a critical illness, the policy often provides that the insurer will pay a lump sum payment.

What Are the Benefits of Purchasing Critical Illness Rider?

While it's a difficult choice, including a critical illness rider in your term plan is a wise option. The addition of this benefit offers the added sense of security that is sorely needed during difficult circumstances. Some of the reasons why you should get this important add-on are outlined below:

1. To Compensate for the Loss of Income

When the family's lone earner is diagnosed with a major disease that prevents him or her from working and earning, the patient and family members are put under a lot of stress. As the policyholder and family provider, you should prepare for this possibility. Your family won't have to worry about juggling home expenses while still paying for your therapy. Your income will be replaced by critical illness insurance, allowing your family time to set their affairs in order while you focus on getting better.

2. Critical Illness Coverage Tax Benefits

Additionally, when you combine a term plan with a critical illness policy, you will receive additional tax benefits. Section 80C of the Income Tax Act of 1961 covers term plans, but Section 80D exempts critical illness coverage. The proceeds from these aspects of your term policy are exempt under Section 10 of the Internal Revenue Code (10D). You save money on taxes in two ways.

3. Medical Expenses That Are Too Exorbitant to Pay

With India's rising healthcare expenditures, each disease leads to significant medical fees for the sufferer and their family. The bills are infinite, ranging from hospitalization to costly testing and medicines. If you add critical illness coverage to your term plan, the lump sum payment will help you pay for medical expenses. You may not always be able to use cashless claims if you have medical. The lump-sum payment at the time of diagnosis relieves you and your family of the stress of trying to raise money for your treatment.

4. Recovery is the Main Focus

You can concentrate all of your energy on recovery when you don't have to worry about medical costs or lost income. You can obtain the greatest care possible, whether it's physiotherapy or rehabilitation programs to help you heal, and you can concentrate on being physically stronger without having to worry about financial obligations. When people don't have enough money to cover their medical bills, they are compelled to borrow or take on debt. People frequently have to drop out of treatment due to financial constraints. You can avoid these situations by combining your term plan with a critical illness insurance policy.

5. The Premium Doesn't Change

When you add critical illness coverage to your term plan, the insurance premium you pay stays the same for the entire term. If you are diagnosed with a serious disease during the policy's term, your premium will not rise because this was previously taken into account when calculating the premium.

Take Away

The added peace of mind that the critical illness cover provides for you and your family is invaluable. In today's fast-paced culture, it is hard to predict what will happen to whom and when. The only thing you can do is prepare for everything that could possibly go wrong. Adding critical illness insurance to your term plan is the first step toward a stress-free existence.

Also, read- Know The Difference Between Critical Illness Rider And Terminal Illness Rider

What Is Not Covered Under A Critical Illness Rider?

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.