Is Critical Illness Rider Needed with Your Basic Term Plan?


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When it comes to selecting an appropriate life insurance policy, term insurance attracts most of the attention. While there are diverse benefits associated with a term insurance scheme, it eventually comes down to the sustainable set of perks for the family of the insured, in case of timely or untimely death.

However, if you are already considering the possibility of purchasing term plan insurance, it is advisable to look for certain additional clauses and riders. Reputed insurers like Max Life insurance offer riders which are capable of addressing inclement situations at specific points in time. One such rider is the ‘Critical Illness Rider’ that comes paired with specific term insurance plans; thereby making life simpler for the insured and his or her family.

Should You Opt for A Term Plan That Has Critical Illness Rider Paired Along?

As an insured, you must always give preference to the critical illness rider for a host of relevant reasons. However, before moving further into this discussion, it is important to understand how this rider actually works.

To begin with, a critical insurance rider opens up a door of opportunities for the insured by strengthening the overall policy. This rider ensures that the insured gets hold of a sizeable amount when diagnosed with a critical ailment. This amount can be used for settling loans, debts, and other aspects that need immediate attention.

Therefore, benefits pertaining to this rider improve the overall cash flow once the ailment is detected as the concerned insurer believes that the insured will be requiring a lump-sum figure for handling other life-specific liabilities apart from treatment.

Now when we have discussed about the functionality of the critical illness rider, you, as the insured need to understand more about the benefits of the same; thereby validating subsequent purchases.

  • Firstly, a critical illness rider paired alongside a term plan insurance shows up as a great income replacement tool if and when the insured is diagnosed with a major ailment
  • Moreover, the premium slab remains the same, despite the existential changes to the living standards
  • The insured can easily save a lot of additional taxes under 80D and 80C, provided the term plan comes with the critical rider attached
  • Unlike some of the other riders which are extremely stringent when it comes to the overall payout, the critical illness one offers benefits pertaining to daily expenses and medical treatment, once you are diagnosed

Perks of the Critical Illness Rider

By now it must be quite clear as why you should already get hold of a term plan insurance with a critical illness rider paired along. However, it is only appropriate to enlist some of the other perks of this rider for validating the existing inclination.

  1. Covers all the major ailments including bypass surgeries, organ transplants, cancer, kidney failure, paralysis, stroke and so forth
  2. Offers the full-benefit sum once the concerned ailment is detected
  3. The amount is paid as soon as the insured is diagnosed with a critical illness
  4. Online application filling and concerned activities are supported
  5. Supports sum assured disbursal in case of demise or even permanent disability

While the critical illness rider offers a host of benefits and clearly amplifies the overall essence of the concerned term insurance policy, you must compare term insurance plans and carefully read the declaration before selecting the preferred scheme.

Last but not the least, what needs to be understood is that a term plan with critical illness rider saves the insured (and the family) from getting financially drained out and can help him/her to carry out the treatment smoothly.