Know All About Critical Illness Rider

Life Insurance Riders commonly known as just Riders are optional supplements that you can add to your already existing life insurance plan at a nominal cost. There are different riders for different scenarios and can be added to the plan if you want coverage and protection in that area as well.

Healthcare is one of the most prominent reasons people buy life insurance. Life nowadays is so uncertain and having health insurance can lower down your tension to half when you are backed with financial stability. Critical Illness Rider is one such rider that you can add to your plan. 

What Is The Critical Illness Rider?

According to the Critical Illness Rider, in case the insured policyholder is diagnosed with a critical illness such as cancer, AIDS, or any such disease which will need prolonged treatment and cost a great amount, The Critical Illness Rider can provide great advantages. The expense of this illness is only paid once throughout the coverage period.

Insurance plans with Critical Illness Rider make you eligible for a lump sum payment in case you are hospitalized with one of the illnesses stated in the list of the insurance scheme. This often comprises disorders such as cancer, paralysis, heart condition, cardiovascular disease, and respiratory illnesses, besides many more. While critical disease protection can be purchased on its own, it is often available as a long-term rider.

Advantages Of The Critical Illness Rider

• The Premium Amount Remains Unaffected

People often think that Critical Illness Riders come at huge premium rates while this is totally false. Once term insurance has been applied for with a critical health illness benefit, the premium remains identical throughout the policy period. This means that the premium does not increase until a critical disease has been diagnosed. Furthermore, after the diagnosis of a critical disease, insurance providers forgo future premiums.

• Critical Illness Rider Lets You Save On Taxes Too

In accordance with Article 80C of the Income Tax Act, 1961, the premiums paid in respect of a term plan are eligible for tax benefits. Thus you may deduct from your taxable income the amount of money paid to premiums up to INR 1.5 lakh. In addition, the advantages of this plan are excluded from Section 10 of the Income Tax Act (10D).

• Your Medical Expenses Are Taken Care Of

The expense of medical care in India is rising every day. In view of escalating medical costs, it only becomes necessary for you, to prevent burning a hole in your wallet, to be sufficiently insured by an insurance plan. With your insurance coverage, you can choose a critical disease rider to cover all medical costs. In addition, daily expenses can be covered also by the lump sum granted by the insurer.

• Survival Chances Are High With A Corpus For Good Treatment

You will be financially burdened with exorbitant medical expenditures without an insurance policy. People with serious diseases are very often not treated because there is a shortage of money. Otherwise, the odds of death increase without proper treatment. However, you may acquire timely funding to undergo the required therapy with a crucial benefit coverage that increases your chances of survival.

Conclusion

Most of the insurance policies offering the Critical Illness Rider provide it at nominal costs and secure your life in case of a critical disease. Even though most of the diseases are covered in these riders, you should cross-check carefully if your needs and requirements are met or not. In short, Critical Wellness Rider is a must add to your plan especially when you are growing old or about to retire.

Also Read:

Life Insurance Riders: Taking Advantage Of Policy Benefits

Top 5 Term Insurance Plans With Critical Illness Rider

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.