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When you have a family, you will not stop at anything to ensure their happiness and security. You work hard day and night to ensure the ones dependent on you have a comfortable life. However, unforeseen tragedies can lead to significant stress in a household. It can also lead to substantial financial stress in an individual's life. Along with this, the medical costs in our country are soaring through the skies. These events can severely hamper the financial stability of a household. If you pass away from any unfortunate event, your family's financial security is also jeopardised. Therefore, for such situations, you can get a life insurance plan.
Life Insurance
A life insurance policy is a signed deal between a policyholder and the insurance company. In this plan, the insurance company provides a specific sum to the insured individual's family or mentioned beneficiaries if something happens to them. The policyholder will have to pay a particular premium amount to the insurance company for a pre-defined tenure in these insurance policies.
Individuals can further enhance the coverage they get from an insurance plan with the help of riders. Riders@ are additional coverage that you can get from an insurance plan by paying an enhanced premium, depending on the rider chosen. A rider will help the policyholder get coverage for a specific situation. Some riders, like the Critical Illness Rider, are beneficial for taking care of medical expenses arising from the treatment of certain critical illnesses.
What is Critical Illness Cover?
If a policyholder gets diagnosed with a critical illness, it can cause severe disruption to their life. Along with the stress of dealing with a life-threatening disease, the medical bills involved in its treatment can also be very high. Handling these medical costs can lead to a heavy dent in their life savings. The policyholder may be dealing with many issues like their welfare, hospital bills, and what would happen to the ones close to them in their absence.
To assist individuals dealing with such a situation, insurance companies offer the critical illness rider@. Including the critical illness rider in an insurance plan helps the policyholder deal with handling these situations. The critical illness cover covers issues like stroke, paralysis, cancer, organ failure, etc.
Many individuals from the younger generation live an unhealthy lifestyle, and along with their stressful workloads, they may be putting their bodies in harm's way without even realising it. These lifestyle habits will make them susceptible to any of the major illnesses. Along with this, the rising healthcare costs can also add an extra burden to their lives. Understanding the importance of critical illness insurance and adding them to the insurance policies will help deal with such situations.
Let's see why critical illness insurance is important.
Importance of Critical Illness Rider:
Take care of medical bills: The critical illness rider pays out a lump sum on the diagnosis of the listed illness, which helps you take care of the medical expenses.
Hospitalisation as well as non-hospitalisation coverage: The payout covers not only the hospitalisation costs but also the pre and post-hospitalisation expenses like medical tests, imaging, medication, etc.
Optimum Sum Assured to cover the expenses: The Sum Assured from the Critical Illness Rider@ is mostly the same as the base policy cover with a cap on the sum assured.
Ensures good quality treatment: The security of a lump sum payout from the rider@ allows you to get the best possible treatment against the illness and not worry about the funds required to deal with it.
No medical test required: Generally, most insurance companies do not ask the policyholders to take a medical test when adding the Critical Illness Rider to their plan.
Tax* Benefits: The Critical Illness Rider is categorised as a health-based cover and comes under the purview of Section 80D of the Indian Income Tax Act. The premiums paid towards the Critical Illness add-on are tax*-deductible under Section 80D.
Any policyholder who has a family history or chances of contracting a critical illness can add the rider to their insurance policy when purchasing the plan. The rider can be of great monetary support for the policyholder and their family. As it is a critical illness, the treatment may cause heavy financial stress to their household. Hence, this rider@ helps them handle their financial stability during stressful time.
Who should include the Critical Illness Cover in their Life Insurance?
Sole earner of the family: With the rising healthcare costs, it is advised that you must include the Critical Illness Rider@ in your term insurance plans if you're the sole earner of your family. Being diagnosed with a critical illness is not something anyone can predict. However, if you include the rider in your plan, you will be prepared to face the worst possible situation.
Family or medical history of critical illness: If an individual has a family history of a specific illness or their past medical history makes them susceptible to certain critical conditions, then it is advisable to include a critical illness rider@ as a precaution.
Including such a rider@ helps the policyholder deal with the medical costs without affecting their household's financial stability. While you may live a long life without being diagnosed with a critical illness, you will be relaxed knowing that you are protected on the off chance you are.
TATA AIA Life Insurance Comprehensive Protection Rider
TATA AIA Life Insurance offers the TATA AIA Life Insurance Non-Linked Comprehensive Protection Rider (UIN: 110B033V02). It is an all-around rider@ that offers protection against:
Accidental Disability
Critical Illnesses
Terminal Illnesses, and much more!
The major features of this rider include:
Improved protection with a choice of protection against death, disability, critical illness, etc.
The ability to select how the benefits will be provided – lump sum, regular income for a pre-determined period, income till the spouse is alive or waiver of premium.
You can extend the coverage to your family under the same plan.
Tax* benefits as per the prevailing tax regulations.
Summing Up
A critical illness insurance rider@ is an exceptional addition to an insurance policy as it will provide protection for different critical illnesses. Including them in an insurance plan will protect your life savings and maintain your family's financial stability.
L&C/Advt/2023/Mar/1059
