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Max Life : Riders for Critical Illness or Separate Standalone policy

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03 May, 2021 by  Aravind Kumar.K


first of all I would liek to thank the Beshak team for the Term Insurance ebook, it has been greatly helpful.

I was considering the Max Life Term plans and was confused between opting for the riders for critical illness or going for a standalone policy. The Beshal Guide recommends separate cover. But a comparison between the rider in the MAx Life Smart Term (and smart secure plus) policy and the Max Life stand-alone critical illness policy shows a higher premium for the stand-alone policy for a similar coverage.

Thereore request your help in providing additional clarifications on this. Are there insurance providers options you recommend considering ?

Many Thanks for the help.

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Term Life Insurance

2 Answer

04 May, 2021

Hi Aravind,

A stand alone policy is a more comprehensive cover compared to a rider.

A stand alone policy will cover more types of diseases and usually has provision for payout for treatments like angioplasty or any other treatment which may not be as costly as some of the other critical illnesses.

A rider usually covers those critical illnesses, treatments for which are very costly. They tend to leave out covers for comparatively cheaper treatments. This is primarily because as a rider/add-on it needs to be kept as simple and straight forward as possible. They can't be built to cover many possibilities/scenarios, whereas a stand alone policy can be.

Also, there are stand alone CI policies available in the market that can be customized to some extent or have 2-3 variants to choose from.

Hope this helps!

Cheers :)

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08 May, 2021
Aravind Kumar.K
Sir, Thanks a lot for the response and advice. can you please direct me to the CI Policy providers that are customizable as you mention ? thanks ! Regards Aravind
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08 May, 2021
Hi Aravind, All leading life insurance companies have Critical illness policies. Some of them are mentioned below but it is not an exhaustive list. ICICI Pru Life Heart and cancer policy HDFC life's CI policy Future Generali's Heart and health insurance policy Bajaj Allianz CI policy Hope this helps! Cheers :)
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06 May, 2021

Hi Aravind,

Another factor in favor of stand-alone CI policies is they run independently of your primary Term plan. They can be customized for Sum Assured, Policy duration, Premium Frequency & mode, etc. Whereas, a CI rider tags along with your Term plan & the above variables of your rider have to be a function of your Term Insurance Sum Assured, duration & payment term.

For example, the Sum Assured of a critical illness rider can only be a certain percentage of your Term Sum Assured. In most cases, it is capped at 50 – 60% of your term SA.

To sum it up, a stand-alone CI policy is more comprehensive in scope and serves your needs better. One must judiciously make a choice by evaluating one's needs & the premium differential. 

Best Wishes,

Asad Akbar

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