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Why Should You Get a Critical Illness Insurance Plan with Your Term Insurance Policy?

  12/27/21 9:25 AM

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Prior and efficient planning is imperative if we wish to secure the financial future of our loved ones. Considering the uncertainties of life, a term insurance policy plays a central role in ensuring the financial wellbeing of our family. A term plan secures your greatest asset – you. Nothing is as important as your life and your ability to make a living, and term insurance provides you with a financial cover so you continue to lead a stress-free life without the worry of what would happen to your family in your absence. 

Buying a life insurance term plan is an important financial decision. Therefore, due time and thought must be invested to analyse the different term insurance plans in India. The internet has a plethora of information that will help you identify the best term insurance in India for you. Individuals can also make use of free tools such as a term plan calculator that will provide information such as how much coverage is required and the term plan premium that you will have to pay, basis your profile.

What is a Term Plan?

A term plan is the simplest and purest form of insurance. It provides financial protection to your family should the policyholder die while the term insurance policy is still active. It is also among the most affordable life insurance plans available. Even a low-cost term insurance plan can get you a large amount of life cover at affordable rates. Policyholders can also enhance their existing term insurance with the help of insurance riders.

What are Term Insurance Policy Riders?

term insurance rider is an additional benefit that comes with a term insurance policy that provides the insurer with enhanced coverage. Insurance riders strengthen a term insurance policy by providing multiple added benefits beyond the core offering of the death benefit. The conditions and the cost of the riders vary according to the plan, the term plan premium, and the insurance company. While some plans are inclusive of the term insurance, some others need to be purchased separately by paying an additional premium. One of the popular riders available with term life insurance is the Critical Illness Rider.

What is a Critical Illness Insurance Plan, and Why Should You Buy It?

While every insurance rider strengthens the existing term insurance, a critical illness rider is perhaps the most significant one, as a critical illness can seriously impact the finances of an individual.

A critical illness insurance plan is a must with your basic term plan as it acts as an income replacement. This rider helps you cope with the medical expenses regularly through add-on coverage. The insurer can also provide the patient with the much-needed cash-flow during the recovery phase. Most term insurance plans in India with a critical illness rider provide coverage for major illnesses such as a heart attack, cancer, paralysis, organ transplants, kidney failure, etc.

Some important additional benefits need to be considered while purchasing a critical illness rider. If the tenure of the plan is 30 years, then the coverage would continue even after claiming the benefit on selected critical illnesses. Additionally, the total sum assured is payable in case of demise or total permanent disability of the insured. A critical illness rider does not have a basic survival period, and the benefit is paid immediately based on the first diagnosis. 

The critical illness rider for the Edelweiss term plan – Zindagi Plus covers 12 critical illnesses and promises the assured sum to manage the expenses that come with treating them. With this rider, the insured individual does not need to pay extra upon diagnosis of a critical illness as the premium stays the same. Moreover, with the purchase of a critical illness rider, the policyholder can avail double the tax benefit under section 80C and section 80D of the Income Tax Act.   

The critical rider for the Edelweiss life insurance Zindagi Plus provides the policyholder with the entire sum assured after 30 days of diagnosis. Depending on the term insurance policy, the detection of critical illness may either continue or terminate the plan.  

Critical Illness Insurance Plan with Zindagi Plus by Edelweiss Tokio Life Insurance

Edelweiss Tokio Life Insurance offers Zindagi Plus – a customisable term insurance plan that offers extensive life cover at cost-effective premium prices. One of the major features of the plan is the Critical Illness Rider available on the payment of an additional premium.

The major features of the rider include:

  • Maximum Sum Assured up to Rs 50,00,000.
  • Payment of pre-determined Sum Assured on the diagnosis of a listed critical illness.
  • Illnesses such as Open Chest CABG, Cancer of Specified Severity, Coma of Specified Severity, Open Heart Replacement, Myocardial Infarction of Specified Severity, Repair of Heart Valves, Third-Degree Burns, Kidney Failure with Regular Dialysis, Stroke with Permanent Symptoms, major Organ Transplant, Bone Marrow Transplant, Surgery of Aorta, Permanent Paralysis of Limbs and Blindness are covered under this Rider.
  • The entry ages are from 18 to 65 years.
  • The tenure for the Rider can be between 5 years to 52 years.
  •  Choice of premium payment options – Limited Pay, Regular Pay, Single Pay

To Sum Up

A critical illness rider can provide financial backing when it is most needed. As health-related risks tend to be unpredictable and expensive, it is important to choose term insurance with a critical illness rider to fight the financial complexities that arise. Aside from using tools such as a term plan calculator, investors must also consult experts to determine the right term insurance cover and completely understand the benefits of a critical illness insurance plan.   


Siddhant Dubey - Writer & Photographer

Siddhant works as a freelance content writer who is interested in a wide range of spheres from photography and personal finance to cooking. He is also an aspiring photographer striving to showcase life around him through his vision. 

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