Now when an individual has made the correct choice of purchasing a term insurance policy, it is appropriate to understand more about the concept of riders and how the concerned insurance plan actually renders financial support to the family of the insured. A term plan with critical illness rider is probably the most underrated yet useful policy that is capable of offering an additional support to the insured and even his or her family. However, before we delve deeper into this topic and analyze the types of critical ailments which are covered, it is important to understand more about the term insurance policy.
What is a Term Plan?
Put simply, a term plan is more of an insurance scheme that offers benefits and sum assured to the family of the insured, provided the concerned individual is not existent anymore. Therefore, a term plan doesn’t offer any benefit if the insured outlives the insurance period. However, things can be improved upon for the insured if he or she selects certain add-ons while purchasing the term policy in the first place. Better known as the riders, these add-ons offer extra privileges to the insured, in addition to the sum assured.
Does Term Insurance Cover Critical Illness?
Critical illness rider needs to be added with a term plan for the insured to avail additional benefits if he or she is diagnosed with a critical ailment. While some people emphasize on getting a health insurance instead, a critical illness rider offers additional benefits, including lump sum, one-time payments, constant premium slabs, double tax saving benefits, minimal to zero medical checkups, and more. Apart from that, a critical illness rider can be leveraged as an accelerated payout or additional payout, depending on the premium rates, pre-defined selections, and even requirements. That said, it is important to make sure that pre-existing conditions aren’t included and the illness is identified by the concerned insures as a critical one.
5 Critical Ailments which are Usually Covered
A term plan with critical illness rider is usually responsive to any kind of Cancer, Kidney failure, Stroke, Liver Disease, and Lung Disease. While the number of ailments which qualify might vary depending on the insurer, these 5 illnesses are usually identified by every single vendor. However, if individuals are to look at some of the other options which might or might not qualify, loss of limbs, head trauma, third-degree burns, and even permanent paralysis often make the cut.
Can there be any Loopholes?
The only thing which needs to be considered before using up a critical illness rider is the survival period after ailment diagnosis. Most insurers make it a point to disburse payments only if the insured survives the prescribed time limit. In usual cases, the timeline is somewhere between 30 to 90 days and the insured needs to be alive for the same, in order to receive any sort of payout. Therefore, it is advisable to opt for a rider with a minimum survival period.
While we have mentioned the 5 commonest of critical ailments, a term plan with critical illness rider needs to be purchased carefully, after looking at the pre-existing terms and conditions.