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POSTED BY ON December 9, 2012 1:23 am COMMENTS (5)
Hi All,
I have taken an Apollo Munich Optima Restore health insurance policy for my wife and me (no kids). I am now looking at getting a term plan – Kotak Preferred and am contemplating adding a critical illness rider to it. Is this a useful thing to have or overkill as i have a health insurance plan already? Also does anyone know if Kotak has a good history of honouring these riders?
Thank you so much for all your advice,
SD
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Thank you so much for this advice. I am fully committed to taking Critical Cover now for my wife and myself. Here is the complication i have now.
I realized that my term plan comes with a good critical cover that runs till i am 55 (25 year cover taken 5 years ago when i was 30) which i had taken while in UK as a protection for the mortgage on our flat. Now i am back in India and i have taken the Kotak preferred term plan with critical cover rider for my wife (30 year cover till she is 63). My big concern is what happens to critical illness cover post the end of the term for these rider driven policies as it is probably far more likely that we will need this cover post 55 and 63 years of age (assuming we dont get any of these diseases before then)? Hence my main question is ‘should i get a separate CI cover that runs as long as the premiums get paid eventhough we have these term plan linked CI policies for now?
Thank you so much.
Shyam
Hi Mr. Menon,
You have touched a very important topic which is often mixed.
Term Insurance (money paid after death), Medical Insurance (for minor illnesses) & Critical Illness(person is alive but very vulnerable) are all different types of insurance cover and all three (plus a permanent disability cover) work together to make your financial plan shock proof.
I would strongly recommend you to read my article on http://insight.banyanfa.com/critical-illness-insurance/ which explains this linkage and the importance of taking CI cover which you are contemplating as an overkill.
Regards
Banyan Financial Advisors
I dont have any specific recommendations You can use policybaazar to compare.
PLease read the document carefully before accepting as a CI policy pay out rules (whether rider or standalone) are rigorous then other policies)
Thank you so much for the reply. Do you have any recommendation for a pure play critical illness cover policy?
Thank You,
SD
Critical illness cover is very different from mediclaim and essential
Very difficult to get hold of rider claim settlement data, Dont think it is available in the IRDA report
Before going for a rider you should consider the options and cost of a stand alone CI rider.
in many policies after CI payout the sum assured on life will decrease.
A ‘stand alone rider’ is independent less complex. You can search on this topic on the web and can find couple of useful article which advocate this