A detailed look at the critical illness life insurance rider

Critical Illness Insurance Rider | Sun Life Indonesia

There are several types of life insurance to choose from to secure the lives of you and your loved ones. Any type of life insurance you choose, your insurance company will offer you riders that you can add to your existing plan. These riders provide add-on benefits, and you have to pay extra premiums for them. A policyholder can choose riders according to what aspects of life they need additional security towards. One of the most common life insurance riders policyholders these days go for is the critical illness life insurance rider. 

In India, there has been a rapid rise in the cost of healthcare, and this has become a major worry for all citizens. The inflation rate in the health care industry has doubled in comparison to other goods and services. The rising cost of healthcare, along with an increase in lifestyle-related diseases, has made it more important than ever to have financial cover against health ailments. People purchase health insurance plans to combat the financial burden that health emergencies cause. However, there are several instances where having health insurance alone may not be sufficient. Life insurance plans with critical illness cover help reduce those gaps, enabling an all-rounded health coverage.

Meaning of critical illness life insurance rider

In simple terms, a critical illness rider provides a policyholder with a certain degree of financial security when they are severely ill. When a policyholder purchases life insurance, they get a base life cover. Along with the base plan, one can choose optional life insurance rider plans. They are like add-ons to the base plan, which offers additional benefits for additional premiums. A critical illness benefit rider is one such rider that offers coverage against critical health conditions of the heart, liver, and cancer. 

When an individual thinks about insurance related to diseases or hospitalization, they usually think about health insurance. Health emergencies usually have an enormous impact on the financial standing of a person and even their family. The diagnosis of critical illness often involves treatments that are usually long, with aftercare also required in the following days. The treatment of critical illnesses like cancer, liver, or heart ailments is relatively expensive. Being diagnosed with such an illness can hamper a person’s financial wellbeing and may even lead to them losing all their savings. 

For critical illness, health insurance plans may have a few gaps. A single dose of medicine in certain types of cancer can cost thousands of rupees, and the complete treatment may comprise multiple doses. Usually, the treatment of cancer costs several lakhs of rupees. Apart from the treatments, there are several other costs incurred in treating a critical illness. These costs may add over time and hamper an individual’s financial and emotional wellbeing. To avoid this scenario, it is recommended to add a critical illness rider to your life insurance policy. The critical illness rider coverage that you choose while buying the policy is the amount that will be covered. Use a life insurance premium calculator to get an estimate of the premiums payable after adding the rider to your base plan. 

Benefits of a critical illness rider

Usually, most life insurance plans offer the same list of illnesses that they cover under the critical illness rider. Heart attack, major organ transplant, cancer, kidney failure, stroke, and several other critical illnesses are usually the illnesses covered in the plan. Here are some reasons you must consider adding a critical illness rider to your basic insurance plan:

  • Critical illness rider plays the role of an income replacement during tough times of a policyholder.
  • The add-on coverage of the critical illness rider takes care of medical and everyday expenses. 
  • The amount that the rider receives is exempt from taxes.
  • The add-on premiums that you pay for availing the rider are also exempt from taxes. 
  • The rider covers a range of expenses that are involved in the diagnosis and treatment of a critical illness. 
  • The financial cover of a critical illness plan reduces the stress of a policyholder.
  • The benefits are paid immediately after the first diagnosis. 

It is worth considering having a critical illness benefit rider while buying an insurance plan. A life insurance premium calculator would reflect the add-on amount of premium you have to pay for the rider. Ensure that you read the fine print of your rider and you are well-aware of all the terms and conditions, before buying the policy.