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You may have heard of Critical illness insurance plan, but did you know that you could attach critical illness benefits to your existing term plan or life insurance policy too?
Critical illness benefits or critical illness rider as they are known are as important as term insurance itself. This is because they aid you in times of financial need when you are alive but suffering from a critical illness. This rider pays a lump sum amount if the policyholder develops any critical disease from amongst those covered by the rider. We give you four reasons why you should consider supplementing your term insurance with a critical illness rider.
It is the perfect supplement to your health plan.
Health insurance covers your hospitalisation expenses and medical costs when you are admitted to a hospital. However, there are other expenses like pathology tests, ambulance and therapy charges, and so on in case you are hospitalised. Also, many of the critical illnesses like cancer do not require constant hospitalisation and are therefore not covered by health insurance and medical policies. However, these diseases require repeated hospital visits and extensive medication. All this is very expensive. In times like these, a term insurance with critical illness benefit can be of help.
It acts as a replacement for income.
When you are suffering from a major illness, the medical bills mount up. Things get worse if you are the sole breadwinner of your family. Your family will be left without a source of income. Thus, critical ailments not only affect you physically; they also have a major impact on the finances of your family. A critical illness insurance rider releases a pre-decided amount if you fall prey to any of the illnesses that are in the scope of the rider. These funds can be used to cover medical and household expenses.
It gives tax benefits.
You are eligible for tax benefits on the premiums that you pay towards maintaining your life cover. Besides, you can also avail tax benefits on the purchase of a Critical illness rider. The payout that you get if you fall prey to a critical illness covered by the term insurance with critical illness benefit is non-taxable under Section 80D of the Income Tax Act. Thus, you do not have to shoulder the additional burden of taxes and can concentrate on your health.
You can avail the benefits ANYWHERE.
In the case of most health plans, the benefits are available at select hospitals only. But what if you are on the move, in a different state or a different country altogether? However, with a critical illness rider, you can rest assured that you will be able to access quality healthcare anywhere in the world. In case you fall prey to a critical illness anywhere in the world, you can reach out to your insurance company with proper medical documents and proofs. Once the company completes its investigations, it will release the payout in 28 days. You can then use this amount to pay your hospitalisation and medical bills.
There are a few things to know before you opt for a medical rider. You need to know the difference between terminal illness and critical illness insurance for one since the rider does not cover terminal illnesses or those diseases that are more than likely to cause death in the next 12 months. Also, check if the cover you are opting for is sufficient. You must also carefully review the diseases that are covered by the rider before supplementing your term insurance plan with a critical illness rider.
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