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Why Your Term Plan Needs the Critical Illness Benefit Rider?

Updated On Sep 11, 2021

Have you decided which term insurance plan to buy? If you think you have made the life of your loved ones secure with this move, you are absolutely right. Your term insurance plan will definitely safeguard your family member’s life goals and prevent them from facing any struggles due to money concerns in your absence. However, have you ever thought what if life uncertainties took your work life away from you? What if one day you are diagnosed with a critical illness and find yourself unable to work anymore? How would you or your loved ones deal with the financial instability due to lack of income? If you think you can face such a situation in the future, go ahead and add a critical illness benefit rider to your term insurance plan. 

Reasons to Add Critical Illness Benefit Rider to Your Term Plan 

Below mentioned are a few key reasons why you must not think twice before adding critical illness benefit rider to your term insurance plan without giving it a second thought:

  • Same Premium 

Once you have added the critical illness benefit rider to your term policy, your policy premium will remain the same throughout the policy term. It won’t increase if you get diagnosed with a critical illness. As a matter of fact, your insurance company will waive off any future premiums in case you are diagnosed with a terminal illness.

  • Medical Expenses Covered 

Needless to say, healthcare costs in India have been increasing for the past few years. With too much to spend on healthcare, it becomes a necessity for every individual to get themselves covered by a plan that is vast in its coverage. Here, choosing a critical illness benefit rider with your term insurance will help in ensuring that you have all your expenses covered if the need arises. What’s best is that the lump sum amount provided by the insurance company will be used for covering daily expenses as well.

Also Read: Common Exclusions Under Life Insurance Riders 

  • Increased Survival

The lack of an insurance policy can lead you to financial struggle due to high medical costs. Quite often, people with critical illnesses choose to avoid treatment or continue treatment due to a lack of funds. One must always keep in mind that not availing of proper treatment or leaving in the middle due to money concerns can increase their chances of getting more ill or even losing a life. However, having a critical illness rider benefit by their side, people can receive proper and complete treatment as they can receive funds on time to undergo the necessary treatment, thereby increasing the chances of survival.

  • Tax Benefits

One of the key reasons to buy a critical illness benefit rider above term insurance plan is that it helps you gain tax benefits. You must be aware that the premiums paid towards a term policy are eligible for tax benefits in adherence to Section 80C of the Income Tax Act, 1961. What’s more, is that the benefits received from the rider plan would also be exempt under Section 10 (10D) of the Income Tax Act. 

Your critical illness benefit rider would grant you financial security against cancer of specified severity, open-chest CABG, major surgery of the aorta, repair of a heart valve or open heart replacement, end-stage liver disease, and more based on the critical illnesses covered under your plan while you take care of yourself.

You may also like to read: How To Customize Your Life Insurance With Riders? 

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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