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A term plan with a critical illness and disability rider provides financial support in case the policyholder meets with a severe accident or is diagnosed with a critical illness. It provides enhanced coverage over and above the death benefit of a pure term plan for an additional premium.
A term policy is a basic life insurance policy that provides your loved ones with financial support when you are not with them anymore. However, there may be other situations, like an accidental disability or a critical illness, where you are unable to provide financial support to your family.
A term insurance plan with critical illness benefit and disability cover provides your family with financial support in such situations. But how do you get these additional benefits, and what do they cover?
Let us find out more about term plans with critical illness and disability riders#.
What is a Term Plan with Critical Illness and Disability Rider?
A pure-term insurance plan does not cover some aspects, such as critical illness and accidental disability of the policyholder. To cover yourself against such situations, you can opt for a term plan with a critical illness and disability rider.
Let us first understand what a rider is.
An insurance rider is additional coverage you can get with your insurance plan to enhance its coverage. You must pay an additional premium to get the chosen rider benefit. Critical illness and disability rider benefits are rider options you can add to your term insurance plan.
Here is how they differ from each other:
Critical Illness Rider
The critical illness rider is a term insurance rider that provides a lump sum amount to your family if you are diagnosed with a critical illness when your term policy is active. The kind of illnesses covered under critical illness riders may differ for various insurers, but they usually cover a wide variety of ailments such as kidney failure, tumours, cancer, heart diseases, etc. Your family can use the financial benefits from this rider to cover hefty medical bills and get the best medical care for you in difficult times.
Accidental Disability Rider
The accidental disability rider is a term insurance rider that provides financial support if the insured person meets with an accident that leads to their total and permanent disability within a specific period from the accident. This rider also provides plan benefits to the policy nominee in case of the death of the policyholder due to the accident. The received amount can be used to compensate for the loss of income due to the policyholder’s accidental disability or death.
Why Do You Need Term Insurance With Critical Illness Cover and Disability Rider?
Here are a few reasons why adding a critical illness and disability rider to your term insurance is a good choice:
Financial support: The best term plan with disability rider and critical illness cover provides financial support to your family in their difficult times. It helps them pay hefty medical bills and other financial dues when there is a loss of income in the family.
Extensive coverage: While a basic term plan provides only death benefits, adding these riders enhances the coverage scope of your term plan for an additional premium amount. Since death is not the only cause for loss of income, this rider benefit provides coverage for other critical causes like accidents and illnesses.
Income tax* benefits: You can get tax* benefits according to the applicable tax* provisions on a term plan with critical illness and disability rider.
Affordable policy premium: Adding a critical illness and disability rider to your term insurance policy is more cost-effective than buying individual critical illness and disability cover policies.
Peace of mind: Protecting your family against the financial burden of critical illness and accidents will provide you with a sense of security and an assurance that your loved ones will not be helpless in difficult times.
What is Covered Under Term Plan With Disability Rider and Critical Illness Rider?
While the exact coverage scope under the critical illness and disability rider may vary from one insurer to another. Here are a few conditions covered by most insurers under these riders:
Illnesses Covered Under Critical Illness and Benefit |
|
1. Cancer |
19. Chronic Recurrent Pancreatitis |
2. Cardiomyopathy |
20. Coma |
3. Heart Transplant |
21. Creutzfeldt-Jakob Disease |
4. Major Surgery of the Aorta |
22. Liver Failure |
5. Open Chest CABG |
23. Lung Failure |
6. Myocardial Infarction |
24. Loss of Speech |
7. Open Heart Replacement/Repair of Heart Valves |
25. Loss of Limbs |
8. Primary (Idiopathic) Pulmonary Hypertension |
26. Loss of Independent Existence |
9. Stroke |
27. Viral Hepatitis |
10. Alzheimer’s Disease |
28. Major Head Trauma |
11. Blindness |
29. Kidney Failure |
12. Benign Brain Tumor |
30. Major Organ Transplant |
13. Apallic Syndrome |
31. Parkinson’s Disease |
14. Bacterial Meningitis |
32. Permanent Disease of Limbs |
15. Aplastic Anemia |
33. Third Degree Burns |
16. Deafness |
34. Muscular Dystrophy |
17. Encephalitis |
35. Motor Neuron Disease |
18. Poliomyelitis |
36. Severe Rheumatoid Arthritis |
As stated, the coverage scope for the critical illness and disability benefit differs for various insurers. Therefore, it is advisable to go through the policy documents in detail and get any clarification required from the insurer before adding this rider to your term policy.
Disability and Critical Illness Cover in Term Plan with Tata AIA
At Tata AIA Life Insurance, we understand the importance of enhancing the coverage scope of your term insurance policy for you. Therefore, we offer you various rider options to enhance your term plan coverage.
Critical Illness Cover is available under:
Tata AIA Life Insurance Non-Linked Comprehensive Protection Rider
Tata AIA Life Insurance Non-Linked Comprehensive Health Rider
Disability Benefit Cover:
Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) Rider
You can choose the rider that suits your insurance needs for a little extra premium and ensure the financial security of your loved ones and peace of mind for yourself.
Wrapping Up
A critical illness and disability rider enhances the coverage scope of a pure-term insurance plan. With this rider, you can ensure financial support to your family members if you meet with an accident or are diagnosed with a critical illness, as covered under your policy terms. It can be a huge financial support to your family when they lose a regular income source and are faced with mounting hospital bills and other debts.
