Term Insurance with Critical Illness Rider

Life is totally unpredictable & Medical Emergencies can knock at your door anytime. If you or your family member gets diagnosed with a Critical Illness, it doesn't take long to lose out on hard earned savings.

Let us consider cancer, for instance, which accounts for nearly 7% of deaths in India on an annual basis.* One of the most effective drugs for breast cancer, called Herceptin, can cost anywhere between Rs. 75,000 to up to Rs. 1 Lakh for a single vial. Patients of breast cancer generally require nearly 6 to 17 vials for treatment. Another popular drug, Avastin, needs to be taken by patients for at least 5 to 10 cycles per course, each cycle costing between Rs. 25,000 to Rs. 50,000. Given that the cost of cancer treatment essentially runs into lakhs and lakhs of rupees, an average Indian often prefers to abandon their treatment rather than paying for all the expenses.

A Term Insurance cover with a Critical Illness Rider at this stage can take care of your financial worries & allow you to focus on the treatment. In fact, industry experts particularly emphasise on the importance of adding a Critical Illness Rider to the base Sum Assured under a standard Term Insurance plan.

* The Economic Times

What Does the Critical Illness Rider Mean?

The Critical Illness rider has been created with the goal of protecting oneself and their families in the event that they incur huge medical bills resulting from a Critical Illness. Considering that serious medical ailments and illnesses are associated with exorbitant medical costs, often costing several Lakhs, a Term Insurance plan with the Critical Illness add-on can prove to be very helpful.

Such policies pay out a lump sum amount equivalent to Sum Assured under the rider, upon being diagnosed with a pre-specified Critical Illness.

Term Insurance Companies

Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.

Why Should You Add the Critical Illness Rider to your Basic Term Plan?

Medical Emergencies come unannounced & in addition to emotional and mental strain, it can drain a significant portion of your lifelong savings. Critical Illness Riders ensure extra protection against these ailments. Available at nominal charges, these riders are helpful, especially if you have a medical history or fall in the high-risk category.

For your understanding, we have mentioned the reasons which signify that Critical Illness Rider should be added to your Basic Term Plan.

The reasons listed above are strong enough for you to seriously consider getting a Critical Illness Rider with your Term Plan.

How can I avail of the Benefits of Critical Illness Rider?

If you are diagnosed with a Critical Illness, you would be required to submit a Diagnosis Report, duly signed & validated by the Medical Practitioner. Upon verification, the Insurance Company will pay a lump- sum amount equivalent to the Sum Assured. The amount can be used for expenses related to the treatment or any other miscellaneous expenses like travelling to & fro the hospital, attendant's expenses etc.

However, this comes with a Waiting Period which is usually 90 Days. It is advisable to check the Terms & Conditions with your respective Insurer, as it might vary from company to company.

Eligibility Criteria to Buy Critical Illness Insurance Cover

How does the Critical Illness Rider work?

1. Purchasing the Critical Illness Rider

   When you are buying a Term Insurance cover, you will see the option of adding riders to your base plan. On opting for the Critical Illness Rider, you will next be presented with the option to pick the Sum Assured under the rider benefit. You are advised to go through the policy brochure to see the list of Critical Illnesses that are covered under the plan.

2. After Diagnosis

   Once you are diagnosed with one of the pre-specified Critical Illnesses, you are required to intimate the Insurance Provider and offer the required details of your condition.

3. Lump sum payout

   Once the Insurance Provider verifies the details offered by you and confirms the validity of the same, it will pay out the lump sum amount directly to your registered bank account.

4. Rider benefits

   Once you receive the rider benefits, you have the option to use the amount according to your convenience. You can use it for day to day expenses or to cover hospitalization expenses, or for any treatment recommended against the Critical Illness. Some Insurers may also provide the necessary cash flow during the recovery period.

   Every Term Insurance Company comes with their own set of benefits and it is extremely important that you go through the information provided in their official websites and brochures before buying a plan.

List of Critical Illnesses covered under Term Insurance

With this rider, the policyholder can ensure proper treatment with the lump sum amount payable on the diagnosis of any one of the following conditions:

**It is advisable to check the coverage of Critical Illnesses under your particular policy.

Companies offering Critical Illness Rider with their Term Insurance Plans

The following table presents a few examples of Best Term Insurance policies that offer the Critical Illness Rider.

Medical Situation in India

In order to further emphasize on the importance of adding a Critical Illness Rider with your Term Cover, the following pointers attempt to highlight the seriousness of the medical situation in India.

1

The Cancer related data highlighted below is in reference to the Globocan (Global Cancer Observatory) India-specific report released by the Indian Council of Medical Research's National Institute of Cancer Prevention and Research (ICMR-NICPR) in 2018.

• The report indicated that the number of cancer cases in the country has gone up by 15.7% since 2012. In fact, a total of 11.57 lakh cancer cases are reported every year.
• A total of 7,84,821 people died as a result of cancer in 2018 alone.

2

Moreover, a combined study by the Registrar General of India, WHO (World Health Organisation), and the Global Burden of Disease (GBD) reported that cardiovascular diseases (CVD) or also commonly referred to as heart-related health problems are one of the foremost causes of death and disability in the country.

• The study indicated that in the 10 years between 2007 and 2017, India witnessed nearly a 49.8% increase in deaths (across all ages) due to CVD.
• Further, the mortality rate due to chronic obstructive pulmonary disease (or COPD), stroke and diabetes increased by 39.4%, 37.1%, and 53.8%, respectively.

3

The following set of data in regards to Heart Attacks was reported by the Indian Heart Association.

• It was noted in the study that almost 50% of all heart attacks in Indian men occur below 50 years of age. Further, 25% occur in men under the age of 40.
• The male population of the country in the age bracket of 30 to 74 is at a significantly higher risk of being diagnosed with cardiovascular diseases than the female population
• While Indian women were reported to have a 12.7% risk of developing cardiovascular issues, approximately 21.4% of the males were at risk

Conclusion

Because of today's hurried lifestyles, one out of every four Indians is at risk of dying from serious illnesses such as cancer or cardiovascular disease before reaching the age of 70. Treatments for these serious illnesses can put a family's finances in jeopardy, as the treatment costs for these ailments can rapidly reach lakhs.

Various studies suggest that the working population in India in the age bracket 30 to 74, is more prone to developing cardiovascular diseases and cancer. Other serious illnesses, such as kidney failure, sclerosis, stroke, or paralysis, demonstrate a rapidly increasing prevalence in the country.

This indicates the pressing need for a Critical Illness cover. Critical Illness Rider helps you get the right medical treatment without any financial burden,