Term Plan With Critical Illness And Disability Rider

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 ill++ness, where you are unable to provide financial support to your family. 
 

A term insurance plan with critical illness benefits 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?

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 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 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.

Benefits of Term Insurance with Critical Illness Rider

Combining term insurance with critical illness riders^ offers several benefits:
 

1. Comprehensive Protection: You get coverage against not just death but also critical illnesses, offering a holistic approach to financial security.
 

2. Financial Support: The lump sum payout from the critical illness rider^ helps you manage treatment costs and living expenses and maintain your financial stability during a challenging time.
 

3. Affordability: Adding a critical illness rider^ to your term plan is generally more affordable than buying separate policies for each coverage.

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 of income loss, 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.

How Does the Term Insurance with Critical Illness Works?

Here's a simplified breakdown of how it works:
 

1. You purchase a term insurance plan and add a critical illness rider^ and/or an accidental disability rider^.

2. You pay regular premiums throughout the policy term.

3. In case of unfortunate events:

• Death: Your beneficiaries receive the sum assured from the term insurance plan.
• Critical Illness Diagnosis: You receive a lump sum benefit from the critical illness rider^ to help manage treatment costs.
• Accidental Disability: You receive regular income payments from the accidental disability rider^ to support your living expenses.

4. When the policy term ends, the coverage expires.

What is Covered Under Term Plan With Disability Rider and Critical Illness Rider?

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.

Eligibility Criteria & Required Documents: Term Insurance with Critical Illness

Eligibility criteria for term insurance with a critical illness rider^ typically consider the following:

• Age
• Medical history
• Lifestyle habits
• Occupation

Required documents may include:

• Proof of identity (e.g., Aadhaar Card)
• Address proof (e.g., Voter ID)
• Income proof (e.g., salary slips, bank statements)
• Medical reports (if required)

It's important to disclose your complete medical history accurately to avoid claim rejection.

How to Buy Term Insurance with Critical Illness Rider?

You can buy a term plan with a critical illness rider^ by following the below-mentioned steps:

• Assess Needs: Determine required coverage considering financial obligations and future goals.
• Choose Coverage: Select term insurance with critical illness rider^, enhancing protection as needed.
• Complete Application: Fill out the form accurately, undergo a medical exam if required, and review policy details carefully.
• Make Payment: Pay premiums through preferred methods to activate coverage and secure your family's future.

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.