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Critical illness: Rider or Standalone
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09 Aug, 2023
by Rahul Raj M.A
I'm thinking about buying term insurance and I came to know about something called a critical illness rider.
So my doubt is
If I add the critical illness rider to my term insurance and I get one of the listed illnesses and make a claim, can I still make a claim for a critical illness if I get a different one later?
Also if I opt for standalone critical illness insurence is it possible to claim again once we claim it for any of the illness previously ?
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Hello Rahul,
When you purchase a critical illness rider alongside your term insurance and are diagnosed with a listed critical illness, the rider will provide the claim payout, and subsequently, the rider coverage will terminate. In contrast, if you choose a standalone critical illness plan, the claim payout structure varies across insurers. Typically, standalone policies delineate between minor stage illnesses and major stage illnesses. If you're diagnosed with a minor stage illness listed in the policy, the insurer will pay a specific percentage (say 25%) of the cover amount. Subsequently, if you are diagnosed with a major stage illness listed in the policy, the insurer will subtract the previously paid amount (75%) and then provide the remaining percentage of coverage, i.e. remaining 75% of the cover amount.
Hope this clarifies!
Thank you!