How to Make Critical Illness Riders Your Financial Shield

Since life is an unpredictable journey, safeguarding your well-being should take centre stage. A sudden diagnosis of a critical illness like cancer or heart disease can shake the foundations of one’s well-being and impact financial stability.

This is where the strategic inclusion of critical illness riders within your financial planning framework becomes important. These riders offer a vital layer of protection, ensuring that your core financial stability remains intact when you need it most.

As medical costs keep rising, the inclusion of critical disease riders has become a necessity. The importance of critical illness riders lies in the fact that they provide coverage against specific life-threatening diseases. 

While the list of diseases covered may vary, some of the most common ones include cancer, heart attack, chronic liver or lung disease, kidney failure, etc. Treating such diseases may require the diagnosed person to undergo hospitalisation for a prolonged period. 

In addition to hospitalisation expenses, they may also need to incur fees for doctor visits and other medical expenses. Here is how a critical illness insurance works:

• Upon diagnosis of such life-threatening diseases, this rider pays a lump sum amount that the insured can use to cover these medical costs

• This lump sum amount is over and above the claim one can make under their health insurance policy

While standard health insurance policies provide essential coverage, they often fall short when it comes to the long-term costs associated with serious diseases. By adding this rider to your insurance policy, you gain an extra layer of protection. 

Check out the benefits of critical illness insurance:

• Financial Stability During Health Crises

In case one does not have this rider, the burden of paying for the treatment costs falls on their family. If the diagnosed person is the sole earning member of the family, there could be a loss of income, making it even more difficult for their loved ones.

In such cases, the family may have to dip into their savings. On the other hand, these riders provide the much-needed funds required for treatment at the right time, saving the family from the financial burden of coping with life-threatening diseases. 

• Coverage for Serious Illnesses

A critical illness benefit can help cover a wide range of medical expenses, including doctor consultation fees, medication costs, and more. You can also use the payout to manage expenses such as ambulance charges, hospital room rent, and both pre- and post-hospitalisation care.

Some of the policies even provide a complete sum assured if the insured is diagnosed with a terminal illness. Others provide protection against permanent disability due to an accident, where the policy continues without having to pay premiums.

Understanding your health risks is the first crucial step towards a healthier future. Proactively evaluating them empowers you to make informed decisions and opt for the right critical disease rider:

• Age: Your age determines the amount of premium you have to pay, with premiums being lower if you get the rider when you’re young 

• Family’s Medical History: A family history of conditions like heart disease or cancer elevates your risk for developing those illnesses, leading to increased premiums.

• Pre-existing Conditions: People with pre-existing conditions have to pay a higher premium amount than those with no such medical conditions.

• Lifestyle: Unhealthy habits like poor diet, lack of exercise, smoking, and alcohol use raise your health risk and thus your basic health insurance premium. 

• Work Environment: If you work in a high-risk environment, the premium you have to pay will be higher. 

A well-chosen rider can provide peace of mind and much-needed financial support if a serious illness strikes. Use these critical illness rider tips when it comes to making an informed decision that aligns with your needs, lifestyle, and long-term financial goals:

• Since some riders have a waiting period before you can claim benefits, it is crucial to understand this timeline 

• Consider the extent of coverage to ensure that you get a substantial sum assured to cover medical costs

• Review the ease of claiming benefits, as this is crucial during times of distress

• Clarify the inclusions and exclusions with the insurance company to ensure that you get adequate coverage

What illnesses are covered under critical illness riders?

Critical illness riders typically cover a predefined list of serious medical conditions. The exact illnesses may vary by insurer and policy, but most critical illness riders include coverage for the following major conditions:

• Angioplasty

• Certain types of cancer

• Chronic liver disease

• Chronic lung disease

• Heart attack

• Heart valve surgery

• Kidney failure

• Stroke resulting in permanent symptoms 

How do critical illness riders differ from health insurance?

Critical riders provide a lump-sum payout upon diagnosis of specific serious illnesses. However, health insurance covers a wider range of medical expenses through reimbursement or cashless treatment. 

Critical illness riders often have a survival period after diagnosis, which is generally absent in health insurance. In case of the former, the insurer needs to survive this period after the diagnosis ailment to enjoy these benefits.

Can I add critical illness riders to an existing insurance policy?

Yes, these riders are add-ons, which you can add to an existing health insurance plan.  

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