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Life is filled with many uncertainties and all of us are constantly trying to ensure that we are adequately prepared for any eventuality. One such uncertainty is the occurrence of a critical illness that can effectively alter one’s entire life for the worse. In this context, there are several critical illnesses such as cancer, cardiovascular diseases, stroke, kidney failure, etc. that are capable of bringing all your plans to a standstill. Therefore, it is necessary to add insurance for critical illness to your life insurance policy.
A critical illness rider# is an additional feature to a life insurance policy that provides the policyholder financial security in the event of a critical illness. Therefore, a critical illness rider# is a tool that enables you to add a critical illness cover to your policy. As is the case with a majority of life insurance policy riders#, it increases the premium amount but the increase in premium cost is negligible in comparison with the protection it offers the policyholder.
Several insurance providers in India offer critical illness riders# in their life insurance policies so as to enable the policyholder to receive the benefits of a life insurance cover as well as a critical illness cover in one comprehensive policy. Furthermore, the combined premium of the aforementioned policies tend to be lower in comparison with separate standalone policies for life insurance and critical illness insurance. Therefore, insurance for critical illnesses can be planned through the appropriate cover with the basic policy.
Tata AIA Life Insurance with our Tata AIA life insurance riders#, for instance, enables you to add the element of critical illness insurance to your life insurance policy. You can choose either the Tata AIA Life Insurance Non-Linked Comprehensive Protection Rider (UIN-110B033V02) or the Tata AIA Life Insurance Comprehensive Health Rider (UIN-: 110B031V02) for a targeted protection against a vast list of critical illnesses, along with terminal illnesses and Covid-19 protection.
There are several ways in which a critical illness rider# can assist you financially, some of which have been discussed below.
1. Provision of a lump sum amount upon diagnosis of the specified critical illnesses
Any medical emergency can disturb the financial equilibrium of a household owing to the additional expenditure it entails along with the physical and emotional trauma. Furthermore, if a medical emergency is in the form of a critical and long-term illness, it has long-lasting consequences for you and your family.
As a result, it can be incredibly difficult to manage the enhanced strain on your finances without any additional income. However, by adding a critical illness rider# to your life insurance policy, you can safeguard yourself, at least financially, against some of the impacts of a critical illness.
Hence you must consider buying a critical illness insurance policy even if you already have a health insurance policy. The latter policy usually only covers the expenses of hospitalisation and leaves you vulnerable in the event of being diagnosed with a critical ailment.
A critical illness cover, on the other hand, offers the policyholder an assured lump sum amount between 30 days to 90 days of their diagnosis, provided the illness is covered under the policy. The amount can be utilised by the policyholder to pay for their medical expenses as well as manage the expenses of their household.
2. The flexibility to opt for monthly payouts
Some insurance policies for critical illnesses provide you with the option to receive the payout of a successful claim as a combination of a lump sum and regular monthly payments. Such an option is particularly suitable for people whose livelihoods are affected by a critical illness.
Asthma, for instance, can cripple a person and restrict their ability to travel to and from work. Similarly, a person undergoing chemotherapy for cancer may not be able to work for extended periods every month. Therefore, a monthly income provides substantial financial support to the policyholder in the event of loss of regular income.
3. Financial protection against the high incidence of chronic diseases in India
It is important to note that a recent report of the World Health Organisation has revealed that chronic illnesses account for 71 per cent of the annual global death toll. Chronic illnesses include cancer, cardiovascular diseases, and chronic respiratory diseases. Furthermore, the above report has shed light on the fact that 75 per cent of the global deaths from chronic diseases occur in low and middle-income countries.
Since India falls under the bracket of low and middle-income countries, the incidence of chronic diseases is particularly high here, thereby making it necessary for you to invest in a critical illness cover. Furthermore, you can buy multiple critical illness policies and financially protect yourself against different chronic diseases.
4. Conservation of your savings during medical emergencies
Having a critical illness cover allows you to let the flow of your savings and investments stay undisturbed in the event of the occurrence of a critical illness. Therefore, instead of being forced to, say, redeem a fixed deposit or stop a recurring deposit to pay for your sudden medical expenditure, you can file a claim under your critical illness insurance policy or life insurance policy with a critical illness rider# and receive a lump sum amount to manage your finances.
A critical illness rider#, thus, enables you to keep pursuing your financial goals in the wake of being diagnosed with a critical illness.
5. Avoid borrowing on being diagnosed with a critical illness
People are often forced to resort to debt to bridge the gap between their income and expenditure due to the additional medical expenses associated with a critical illness. However, if you have a critical illness insurance cover for the disease that you have been diagnosed with, you can follow a simple procedure to file an insurance claim and receive the lump sum amount assured in the policy.
Therefore, by paying a nominal amount for a critical illness rider#, you can add a substantial degree of financial security to your life.
Adding a critical illness rider# to your life insurance policy is a prudent financial decision. At a marginal additional cost, you can ensure a significant amount of protection for yourself and your family in the event of the occurrence of a critical illness. Therefore, you must buy a critical illness insurance cover in accordance with your medical history.
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This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
#Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please refer to the riders brochure or contact Tata AIA Life's Insurance Advisor/ branch