TomorrowMakers ™

Health Insurance

Critical illness rider: A must for Indians

13 July 2015
A critical illness rider is an optional add-on feature that can be bought to compliment the life insurance policy.
 

Avail a crucial additional cover for a nominal additional premium.

The recent Global Burden of Disease (GBD) studies show that cardiovascular diseases are the leading cause of deaths in India. These diseases include ischemic heart disease, Chronic Obstructive Pulmonary Disease (COPD) and stroke.

Treatment for all of these critical illnesses is very expensive. While basic health insurance policies do cover these illnesses, thesum assured they offer is highly inadequate. For example, most health insurance policies offer a sum assured of 2 to 5 lakhs (family floater), while the treatment for ischemic stroke itself amounts to 6 lakhs. Here, traditional life insurance policies are also of little help because they grant the sum assured upon the demise of the insured.

This is where the critical illness rider is useful.

What is a Critical Illness Rider?

A critical illness rider is an optional add-on feature that can be bought to compliment the life insurance policy. It ensures that a lump sum (Sum Assured) is paid to the policyholder if he or she is diagnosed with any of the critical illnesses specified -inthe policy. Once the payout is made, the rider terminates while the life cover under the Base Plan and other riders (if any) continue.

What are the illnesses covered under the Critical Illness Rider?

Each insurance company covers a different array of illnesses under this rider. However, the critical illness rider typically covers:

  • Cancer
  • Open Chest CABG
  • First Heart Attack
  • Stroke

Some companies also offer special Women Critical Illness riders.

What are the conditions of the Critical Illness Rider?

Although the critical illness rider covers the specified illnesses completely, there are a few scenarios where claims are rejected. Generally:

  • The rider does not cover pre-existing or hereditary conditions
  • Claims can be made only if the illness is diagnosed after the waiting period
  • Claim is paid only if the insured survives a specified time frame after diagnosis of illness

What are the types of critical illness riders available?

  • Core/ Non-Accelerated Critical Illness Benefit
    Here, the sum assured under the critical illness cover is independent of the death benefit. The benefit paid by the rider does not affect the death benefit of the life insurance policy.
  • Accelerated Critical Illness Benefit
    Under this kind of critical illness rider, the benefits paid can reduce the death benefit of the base policy.

Also see: Add an extra feature to your policy by opting for a ‘Rider’

 
 
 

Tax Singh

"Tax Fact 8"

POLL

 

MOST VIEWED CONTENT

How pre existing medical conditions affect your health insurance
Health Insurance

How pre existing medical conditions affect your health insurance

A pre-existing medical condition should not be a deterrent for buying your family health insurance and securing their financial future. However, proper disclosure and some precautions ensure that in case if any unfortunate event, you have a smooth and hassle free experience.

5 Simple Things to Know About Maternity Insurance in India
Health Insurance

5 Simple Things to Know About Maternity Insurance in India

A steep rise in maternity expenses over the years is forcing couples to look for options to fund this expense. Those buying maternity policies should understand the terms of these policies.

Health Insurance cover you must get at different stages of life
Health Insurance

Health Insurance cover you must get at different stages of life

With age, your needs increase for this its important to pick the right cover for your life stage. Reviewing your plan at different stages can ensure you get 360° protection.

Group health insurance vs Individual health insurance
Health Insurance

Group health insurance vs Individual health insurance

Though both Individual and Group Health Insurance Plans provide similar coverage, they do differ in various aspects, such as cost and customisation.

Best smartphone apps to track your health
Health Insurance

Best smartphone apps to track your health

Looking for a way to take care of yourself in a cost-effective, convenient way? In technology lies the answer!

Is your Health Insurance plan adequate to cover critical illness?
Health Insurance

Is your Health Insurance plan adequate to cover critical illness?

Health and critical illness are separate categories and each has its own place in a consumer’s insurance requirement. Here’s a simple guide to knowing how to choose between the two, or decide if you need both.

Why should you opt for a family floater health plan?
Health Insurance

Why should you opt for a family floater health plan?

When buying health insurance for you or a loved one, you have the option of buying individual policies or buying one single health policy that covers all of you. Here’s a close look at the latter, called Family Floater plans.

boy

We would love to hear from you!

Question, comment or concern? Our contact form is the best way to get in touch. We will respond to you within 5 working days.

NEWSLETTER