Critical Illness Rider in Life Insurance

Illness can be a difficult time in one’s life. It is important to have proper support during this time. Illnesses always come unexpectedly and adversely affect your life and financial situation. So you have considered the critical illness rider in life insurance to get financial support.Read More

Critical Illness Rider in Life Insurance

Critical illness is offered as an add-on in the life insurance policy on payment of extra premium. The sum assured for critical illness would be above the base sum assured of the life insurance policy. In case of critical illness, the sum assured under the policy is given as a lump sum to the policyholder.

What is a Critical Illness Rider?

Critical illness rider is one of the desirable life insurance riders in which the insured person has an option to buy extra coverage for additional fees. Critical illness rider provides claim in the vent of policyholder contracting critical illness such as Cancer, Heart diseases, tumors, organ failure, etc. Critical illness rider a lump sum amount is provided to the family of the life assured in case the life assured is diagnosed with a listed critical illness during the policy tenure. This rider provides financial support to the family of the life assured in difficult times and helps them fulfill treatment expenses of the diagnosed illness.

  • If a person is diagnosed with a critical illness, the critical illness sum assured will be paid to the policyholder and the critical illness add-on expires but the life insurance cover will remain intact.
  • The policyholder can decide in which hospital he/she would like to get treated.
  • In a life insurance policy, a total of 34 to 52 critical illnesses are covered. The number varies for each insurance company. The higher the coverage, the higher would be the premium to be paid.

The critical illness rider can be purchased during the policy insurance or at the time of renewal. The rider ends once the rider sum assured has been paid or on the completion of the policy term of the rider, whichever is earlier. Critical illnesses are listed in every insurance company’s terms and conditions before buying this rider it is advised to check the list to make sure if you have been diagnosed with any critical illness is mentioned in the list.

Benefits of Critical Illness Rider

Critical illness rider is one of the best riders that you can add to your life insurance policy. This is the best option to enhance your coverage and secure against critical illness-related expenses. Some of the benefits of critical illness rider are

  • Extra Protection: Critical illness benefit rider provides an extra layer of financial protection to you and your family.  The treatment cost for critical illnesses like cancer, heart attack, kidney failure, and others is quite high in India. The critical illness rider provides wide coverage against multiple critical illnesses.
  • Income Replacement:  Critical illness rider helps you to save money when you get diagnosed with a critical illness. If you have a critical illness rider along with a life insurance policy, you will receive a lump sum amount to make up for your income loss and live a peaceful life away from the financial hardships. If you do not have a critical illness benefit rider, can result in a massive loss of savings.
  • No Change in Premiums: For Purchasing critical illness rider with your life insurance policy will not change or increase your premium in case you are diagnosed with any of the critical illnesses that mean your policy premium would remain constant.
  • Tax Benefits: Premiums are paid towards a life insurance policy and riders qualify for tax exemptions. The life insured can avail of double tax benefits by purchasing the critical illness benefit rider for up to Rs. 1.5 Lacs under Section 80C and 10(10D) of the Income Tax Act, 1961.
  • Lump-Sum Benefit: Critical illness rider provides lump sum amount to the policyholder in case the life assured is diagnosed with a critical illness during the coverage period. The lump-sum benefit amount will help the life insured to fulfill his/her treatment expenses for the critical illness.

Best Term Life Insurance Plan with Critical Illness Rider

Company Plan Name Premium
HDFC Life Insurance HDFC Life Protect Plan 1920/-
PNB MetLife Insurance Mera Term Plan Plus 1848/-
ICICI Prudential Life Insurance Iprotect Smart Life Insurance 2309/-
Aditya Birla Sun Life Insurance ABSL Digi Shield 1735/-
Bajaj Allianz Life Insurance Bajaj Allianz Smart Protect Goal 2130/-
Tata AIA Life Insurance Sampoorna Raksha Supreme 1692/-
Canara HSBC OBC Life Insurance I Select Star 1163/-

*Above mentioned premiums are for illustration purposes. Premium rates may vary as per the data entered by you.*

How Critical Illness Rider Works?

A critical illness rider is a rider that allows a person to buy life insurance when they are diagnosed with a critical illness that covers expenses incurred by the insured during a period of hospitalization. Critical illness riders are becoming more popular as people want to protect themselves from the financial consequences of being diagnosed with a critical illness.

Under critical illness rider, the insured person receives a lump-sum amount on the diagnosis of critical illness specified in the policy. According to the lump sum amount paid by the policyholder, the policy coverage becomes less. Apart from this the insured can also take benefit of hospitalization and non-hospitalization expenses that are both covered by your term plan that comes with a critical illness benefit.

Documents Required for Critical Illness Rider Claim

Following are the documents required for claiming Critical illness rider:

  • Duly filled Claim Form
  • Original Policy Documents
  • Photo ID Proof
  • Address Proof
  • Medical Test Reports and certificates
  • Bank Account Details

Critical Illness Rider Exclusion

Exclusions under critical illness benefit riders are

  • Pre-existing medical disease
  • Congenital Infection
  • Attempt to suicide
  • self-inflicted injuries
  • Participation in war, riots, or rebellion activities
  • Participation in criminal,  dangerous activities

Eligibility Criteria of Critical Illness Rider:

Parameter Eligibility
Entry Age Minimum 18 years to Maximum 65 years
Maturity Age 75 years
Sum Assured Rs. 1 Lac to No limit
Premium Payment Term Limited pay, Regular Pay
Waiting Period 90 days
Survival Period 30 days
Premium Payment Mode Monthly, Quarterly, Half-yearly, Yearly

How to Buy Life Insurance with Critical Illness Rider?

The process of buying a life insurance policy along with the critical illness rider online has become simple with PolicyBachat. For buying a life insurance plan online please visit our website Following are steps to compare life insurance quotes online in our portal.

  • Visit the PolicyBachat Website and select the ‘Life’ tab.
  • Enter your Name, Date of Birth, and Mobile Number.
  • Click on the ‘View Plans’ button.
  • Just Answer 5 Simple Questions.
  • Select your ‘Gender’.
  • Select ‘YES’ or ‘No’ if you have Smoked or Chewed Tobacco in the last 12 months.
  • Select your ‘Annual Income’.
  • Select your ‘Education Qualification’.
  • Choose your ‘Occupation Type’.
  • Enter your ‘Email Address.
  • Then click on ‘Start Saving Money.
  • Premium Quotes of top life insurance plans will be displayed as per data entered by you and which are suits your requirement.
  • Then select the critical illness add-on cover.
  • Enter the sum assured amount as per your budget.
  • Purchase the best life insurance policy using online payment.

FAQs of Critical Illness Rider

How Many Types Of Disease Cover In Critical Illness Rider?

Critical illness rider covers up to 36 major critical illnesses such as

  • Tumour
  • Cancer
  • Kidney failure
  • Heart ailments
  • Paralysis,
  • Heart stroke, etc.

How to Get a Critical Illness Rider?

A Critical Illness Rider is a rider that provides coverage for medical expenses incurred by the policyholder while they are hospitalized due to a critical illness. Insurance companies typically offer these riders as part of their policies. However, these riders are not always easy to find and often require extensive research and comparison shopping. The best way to get a Critical Illness Rider is online at PolicyBachat where you can compare premiums on different term insurance plans with different insurance providers.

Are a Medical test is required to get a Critical Illness Rider?

It depends on the type of policy you choose and where you can get the insurance policy. Most insurance companies ask the medical check-up reports before taking a policy. When the proposal form and paperwork have been successfully submitted, any such medical evaluation will take place.

Can I Buy Life Insurance for Critical Illness?

Yes, you can buy life insurance for critical illness insurance. It covers serious and long-term illnesses that require expensive medical treatment. Most life insurance plans provide critical illness rider cover on payment of additional premium that helps the insured pay for exorbitant hospitalization and treatment expenses.

How Good Is Critical Illness Rider in Term Plan?

Critical Illness Rider is an important part of a Term Plan. It is a rider that can help the policyholder receive a tax-free lump sum payment in the event of death or critical illness. Critical Illness Rider comes in two forms: "death benefit" and "critical illness benefit." The death benefit can be paid to the policyholder’s estate, while the critical illness benefit will be paid directly to the policyholder, their estate, or their beneficiary.

Recent Posts

Reviews & Overall Rating

PolicyBachat has near-perfect ratings on Google and Facebook. Here’s what our customers are saying.

PolicyBachat Rating

Dots

Start Saving Money on Insurance Policy

Compare Life, Health, Car and Two wheeler Insurance rates from top Insurance companies for free.

1,000+ Reviews
Been Here Before?
Get Back to My Quotes

Please wait while your request is being processed.