Protection Against Critical Illnesses with the Right Health-based Rider

Life insurance is the most sought-after saving option for a secure financial future. It will help you assure the apt financial resources for your family in your absence. Insurers have customised the life insurance plans to benefit individual requirements in varied dimensions.
 

For example, savings and investment have become a part of some comprehensive life insurance plans. However, with the increase in the number of life-threatening diseases, insurers decided to include health-based riders^# to protect against critical illnesses that can help you reduce your financial burden to a considerable extent.
 

So, how does a health rider^# operate and what are the protection benefits? Let us try to understand them in detail here.
 

What is a Health-based Rider^# for Critical Illness?

A health-based rider^# is an add-on benefit that you can include as a part of your life insurance plan. It will provide a lump sum amount or a fraction of the insured amount based on your plan to handle the medical expenses associated with any critical illness diagnosed during the policy term.

The critical illness cover can protect various types of illnesses based on the list provided by the insurer. It is an add-on benefit, and the base plan for life cover will provide the sum assured to your nominee in case of your sudden unexpected demise.
 

What are the Benefits of a Critical Illness Riders^#?

Critical illness insurance provides different kinds of benefits to provide maximum protection to the policyholder. Here are a few to mention:
 

1. Extended protection - The health-based rider^# can provide financial assistance to various types of critical illnesses and other physical ailments. Depending on the terms and conditions of the insurer, the plan can cover, for example, around 35 types of illnesses such as Alzheimer's Disease, Muscular Dystrophy, Major Head Trauma, Brain Tumour etc. In addition, the plan can also provide enhanced protection for cancer, permanent total or partial disability, cardiac and other related issues and other hospitalisation expenses.
   
   



2. Dual benefits - The critical illness insurance policy provides dual benefits, life cover and an additional lump sum for managing medical expenses.
   
   
3. Different payout options - The rider^# option provides varied payout options such as a lump sum or a regular monthly income for a defined period or a combination of both. You can choose the option based on your requirement and the critical illness. If you had opted for the lump sum payout option, you could use the amount left after paying for the medical expenses to pay off any liabilities. You can also compensate for the income when you were ill and unemployed.
   
   
4. Flexible features - Insurers provide flexible features such as extending the benefit to your loved ones, purchasing the rider^# during inception or later during policy renewal. Many insurance providers are offering attractive, flexible features for additional benefits. The critical illness insurance in India should provide maximum benefits at an affordable rate. You can research and choose one such policy based on your requirements and lifestyle.
   
   
5. Income Tax* benefits - Premium payments made towards the critical illness policy qualify for tax* benefits as per the tax* laws prevailing in the country.

The terms and conditions for availing of the critical illness rider^# benefits will be based on individual insurers.
 

Critical Illness Cover Rider^#

TATA AIA introduced two different health and protection riders^# to extend the benefit of heath-based coverage to the life insurance policyholders and their families.
 

1. TATA AIA Non - Linked Comprehensive Health Rider^#(  A Non-Linked, Non- Participating Individual Health rider, UIN: 110B031V02) - The rider^# ensures protection against many risks and illnesses, including expenses related to any disability, hospitalization charges, major critical illnesses and other minor injuries.
   
   Some of the major critical illnesses covered are cancer, brain tumour, deafness, blindness etc. You can receive the payout as a lump sum or as regular monthly income.
   
   
2. TATA AIA Non - Linked Comprehensive Protection Rider^#(A Non-Linked, Non- Participating Individual Health rider, UIN: 110B033V02) - An exclusive rider^# option for unexpected life scenarios and risks such as death, accidental disability, critical illnesses or terminal illnesses.
   
   You can opt for the rider^# during inception or during the policy anniversary. There is also the possibility to extend the protection to your loved ones as well.

Who Should Opt for a Critical Illness Rider^#?

As the critical illness rider^# comes as an add-on benefit, many people do not consider it important. However, it provides extended benefits that can reduce your financial burden to a great extent. Here are a few types of people who must consider opting for a critical illness rider^#:
 

1. Family medical history:  If your family has a history of suffering from any critical illness, you should consider purchasing a critical illness rider^#. It will help you reduce the financial burden in case you get affected in future. And if you start investing early, you can accumulate a huge sum in the long term. It will suffice for the medical expenses in your old age when the probability of getting affected is high.
   
   
2. Sole earning member with smoking habits: If you are the sole earning member and have an addiction to drinking alcohol or smoking, the chances of you getting affected due to a critical illness is extremely high. Therefore, life insurance with critical illness cover is very important to secure your family's final future. You can opt for the rider^# with a regular income option to use it for your routine medical charges. For example, if you get affected due to cancer and have monthly chemotherapy sessions, the regular income will be extremely beneficial to pay for the charges.

Conclusion

The insurance providers introduced a critical illness plan in India to extend the benefit of life insurance to provide financial assistance for expenses related to critical illness. In addition, there are various flexible features to customise the plan based on your needs. However, the life cover as per the base plan will remain consistent throughout the policy term. The extent of the amount you can get from the policy will be based on the terms and conditions of the insurer.

Critical illness rider^# is extremely important if your family has a history of suffering from critical illnesses or you are the sole earning member with a smoking habit.

Save responsibly and stay invested in protecting your family's financial future!

L&C/Advt/2022/Oct/2681