Critical illness policy/rider along with term/health insurance

POSTED BY santosh sabale ON March 1, 2012 11:05 am COMMENTS (7)

What are the consequences of taking critical illness insurance policy as rider with term plan or insurance plain or seperate critical illness cover policy? i.e. pros and cons of the same like premium rates, renewals, term, tax benift issues, discount/no-claim bonus/loading, no of diseases covered etc. Can anyone guide over this matter?

7 replies on this article “Critical illness policy/rider along with term/health insurance”

  1. J.D. says:

    Now i realised the importance of CI & PA…..Policies……..

    there r many insur. companies who provide abv policies….
    what we look before buying the abv policies……….
    Please suggest some personal accident and critical illness policies for me.

    Self(31) wife(24) mother (43) …..we already hv apollomunich floater policy SA 2lac…..


    1. Dear JD, please check with Apollo itself for your needs.



  2. Dear Santosh, Critical Illness cover plays an important part in the over all scheme of protection. In case of Riders attached with Term cover, there are limits of a cover you may have & these riders are one time affair. If you are diagnosed with a CI & claim is honored on your CI Rider, you can’t activate it again, even though you are ready to pay prem.

    On the other hand, plain vanilla CI policies are similar to health insurance (a.k.a. mediclaim). You have the option to renew your policy years after years even though there were claims in between.

    Prem. of Rider is lesser than a plain CI policy.

    At the end of the day, it’s your choice, how you want to go ahead.



  3. bharat shah says:

    though there are experts advocating keeping the critical illness as a separate insurance, but one more advantage of having such as a rider with term insurance, one will not need to be alert renewing every year or two/five years as needed in case of separate critical illness insurance from general insurance companies.(of course paying regular premium is definitely required as always.)
    it is also cited that in case of rider once you claim the benefit, it will not be given again, but whereas in case of separate critical illness insurance, it can be continued by continuing the policy., but i am suspicious about that benefit, as once you would undergo any critical illness, whether the insurance company would renew it and at what premium.

  4. BanyanFA says:

    Thats fine. You can refer to a couple of insurance comparison websites which would help you in doing research across multiple insurance companies and products.


  5. santosh sabale says:

    Thanks for the same.
    Now on that basis, i am looking best term insurance plan with critical illness/dreaded disease rider.

  6. BanyanFA says:

    Hi Santosh,
    You have raised a very interesting query. You must have a critical illness insurance. This is very important part of your insurance strategy and even ignored more commonly. Term insurance pays off if a person dies. However, if a person does not die and suffers from a critical illness such as Heart Attack, stroke, etc. which renders him paralysed or incapacitated to do further work and maintain his living standards – term insurance doesn’t help out as the person is still living. It is here where Critical illness rider helps.

    Generally it is advisable to go for the rider component in your Term insurance policy as it avoids the hassle to maintain another insurance premium payment administration hassle – unless the premium difference is material. From effectiveness purpose, it really does not matter whether you take the cover via a rider on Term insurance policy or via a seperate policy.

    The tax benefit & the coverage (in terms of diseases) of the rider would be almost / exactly the same as of a seperate Critical illness policy. However it is a good practise to have a look at the list of diseases being covered by the rider / policy to ensure that all the ones which you want to be insured against are getting covered.


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