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Why You Need A Critical Illness Benefit Rider On Your Term Plan?

Published On Mar 18, 2022 10:00 AM By InsuranceDekho

The Critical Illness Rider is a common term insurance rider that can help an individual and their family maintain financial security during difficult times. A critical illness rider is an optional coverage that can be added to a policy in return for a higher premium. If the life assured is diagnosed with a listed critical illness during the policy's term, the critical illness rider pays a lump sum to the life assured's family. Critical illness riders cover serious life-threatening disorders like cancer, tumors, heart problems, kidney failure, and so on.

Critical Illness Benefit Rider

A Critical Illness Rider is a useful rider that provides financial assistance to the policyholder if they are diagnosed with a serious illness during the policy's term. Cancer, stroke, kidney failure, and other life-threatening diseases are examples of critical illness. A critical illness rider can help you get better coverage for things like cancer of a certain severity, open chest CABG, first heart attack, kidney failure, stroke, and other serious illnesses covered by the plan. When a policyholder or their family is diagnosed with a critical illness, the rider provides a lump sum payment to safeguard the policyholder and their family financially. The money collected might be used to pay for the treatment of the condition that has been diagnosed. 

By offering additional coverage at a minimal additional cost, the critical illness rider assists the life assured in resolving their medical expenses without worrying about financial stability or limiting treatment quality owing to a lack of money. The critical illness rider can be purchased at any time after the base policy's inception or on any consecutive policy anniversary. The rider ends when the rider sum assured is paid or when the policy term of the rider expires, whichever comes first. According to the Income Tax Act of 1961, the rider provides tax benefits.

Why Buy A Critical Illness Benefit Rider?

Medical claim coverage for an insured individual may only reimburse their hospitalization charges in the event of a medical emergency. A critical illness plan goes above and beyond, assisting a person in covering additional expenses such as medical consultation fees, prescription charges, and so on. Ambulances, room rent, and pre- and post-hospitalization bills can all be covered by a critical illness plan. Furthermore, if they have any outstanding debts, such as a mortgage or a vehicle loan, the payment may assist them in meeting their EMI obligations. If the individual is unable to work due to illness, the funds may be used to supplement the family's income.

An individual may be forced to spend all of their hard-earned money if they do not have a critical illness rider. Their years of savings could be wiped out in a matter of months due to the hefty cost of therapy. A critical illness plan, on the other hand, may give the financial assistance that an individual may require at the time while allowing them to maintain their other funds for their unique goals.

Features Of Critical Illness Benefit Rider

1. Lump Sum Payout: When a policyholder is diagnosed with a critical illness, the insurance company pays the policyholder a lump sum payment to cover all treatment costs.

2. Hassle-Free Experience: Insured individuals now have a streamlined, customer-friendly experience when acquiring, renewing, or reporting claims thanks to the digital era.

3. Monthly Income: A percentage of the guaranteed amount is paid out when an insured person is diagnosed with a serious condition, which can be used to supplement their monthly income.

4. Coverage: The policy provides comprehensive coverage, covering 34 of the most prevalent severe conditions.

Take Away

Anyone who rides must have a Critical Illness Rider. A few days of illness can result in astronomical medical expenditures, making it hard for anyone to live comfortably. If they have critical illness insurance, they may rest assured that hospital bills, doctor's fees, and other charges will not put their loved ones in financial difficulties. The prizes for early diagnosis of disease are automatically deposited into their accounts and can be used to pay a variety of expenses.

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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.

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