advice whether to continue critical illness benefit rider to term life insurance

POSTED BY bharat shah ON December 3, 2011 6:11 pm COMMENTS (2)

bought term insurance of rs.50 l with ADB rs.10 l, PDB rs.10 l and CIB rs.5 l riders before one year. but now i think to continue ADB rs.10 l, PDB rs.10 l for relatively nominal premiums and clear terms by their nature, but CIB rs.5 l is rather not comprehensive to include all critical illnesses, as normal for such rider, with premium @35% of basic premium, so better to discontinue CIB. also for KISS, better to keep health insurance and life insurance separate, don’t mix. it is also the condition that in case of availing CIB, the basic term insurance would get curtailed by that a/m.

2 replies on this article “advice whether to continue critical illness benefit rider to term life insurance”

  1. bharat shah says:

    as always your reply to my query (and to queries from others) i am thankful for your reply to my query, which is aligned to my thinking in the matter.
    however before taking actions i like dig rather a little deep. my further queries are as under;
    1. what is the exact logic behind having CI policy from general insurance than CI rider with term insurance apart from the cost (which is widely differing from insurer to insurer )?
    2. is not advantageous to have CI rider at a stretch for a term insurance period with term life insurance than a stand alone CI policy from general insurance, which is normally available for max, 2 years -5 years period?(cost could be near the same if we calculate the pv of the stream of premiums to be paid for 10 yrs or so)
    this is because the CI rider is already bought, and unlike traditional life insurance v/s term insurance ,where expense life cover+investment part in the same policy is to be compared with expense in life cover in term insurance +investment in other avenue , here , expense in CI rider v/s expense in sand alone CI is to be compared .
    kindly express your views in the matter.

  2. Dear Bharat Shah, It’s advisable to have a standalone CI policy from gen. insurer rather than this CI rider.



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