Standalone Policy required or Rider enough? All you need to know about Critical Illness Insurance
The issue with Critical Illnesses is that they creep up on you all of a sudden. One day you’re feeling great and on top of the world, and the very next week you could be given news by the doctor during your routine annual medical check-up that a tumour has been found in your spine.
This is why having Critical Illness insurance by your side has become an important aspect of the urban Indian’s financial planning. A Critical Illness policy will take care of life-threatening (cancer, major organ transplant, multiple sclerosis, third-degree burns, aorta graft surgery) and lifestyle-disabling (heart valve replacement/repair, coma of specified severity, total blindness, end-stage renal disease) illnesses.
When it comes to Critical Illness insurance, you broadly have 3 different options to choose from:
- Standalone Critical Illness policy
- Critical Illness rider with a health insurance product
- Critical Illness rider with a life insurance product
The following is a list of the components of an insurance policy under which we have first given a fair view of each option (that is, a rider and a standalone plan) and then later we have suggested what you should choose on the basis of your needs.
The Coverage Amount
The coverage amount in case of a rider depends on the base policy with which you are opting for an additional rider. Hence, it cannot exceed 30% of the coverage amount of the base policy. However, the coverage amount in case of a standalone policy is up to you.
Our Suggestion: If you want a higher cover, then a standalone policy, where you get to choose the coverage amount, is the right fit.
The premiums of a standalone policy remain the same unless you reach a specific age. However, although the premiums of a rider taken with a life insurance policy remain constant throughout, the premium of a rider taken with a health plan increases with increasing age. But the premium amount you would pay in a standalone policy will be slightly higher compared to a Critical Illness rider.
Our Suggestion: You can either choose to pay lesser premiums and get a lower coverage amount or pay higher premiums for a higher cover. It is always a wise decision to have a higher cover, which you would get with a standalone policy.
A standalone Critical Illness policy can be renewed lifelong while a Critical Illness rider is renewed with the base policy. So, if the base policy becomes invalid, the rider also stands invalid.
Our Suggestion: Quite obviously, a standalone Critical Illness policy is a clear winner here.
Number of Critical Illnesses Covered
The number of diseases covered in a standalone Critical Illness plan is comparatively higher than a Critical Illness rider.
Our Suggestion: A standalone plan is better if you wish to play safe and get yourself covered against as many diseases as possible.
In all the aforementioned parameters, a standalone Critical Illness plan comes out as the winner. For queries, call 86559-86559 or drop an email at email@example.com.