Term insurance plans provide essential financial security to families in case of the policyholder’s untimely demise. However, life is unpredictable, and critical illnesses such as cancer, heart disease, or kidney failure can create financial stress even when the policyholder is alive. To address this concern, many insurers offer critical illness riders that provide a lump sum payout upon diagnosis of a covered illness. This additional coverage ensures financial stability during medical emergencies, reducing the burden of expensive treatments. This guide explores the best term insurance plans that include critical illness rider benefits, helping you choose the most suitable coverage.
What is a critical illness rider?
A critical illness rider is an add-on feature in term insurance plans that provides financial support if the policyholder is diagnosed with a serious medical condition. The benefits of a critical illness rider include:
- Lump sum payout upon diagnosis of a covered critical illness.
- Coverage for multiple illnesses, such as cancer, stroke, and heart attack.
- Helps cover medical expenses, loss of income, or household costs.
- Ensures financial security without affecting the base sum assured of the policy.
- Premiums may be eligible for tax benefits under Section 80D of the Income Tax Act.
How to choose the best term insurance plan for 1 crore with a critical illness rider?
When selecting a term insurance plan with a critical illness rider, consider the following factors:
- Number of critical illnesses covered – Check the list of illnesses included in the rider. A comprehensive rider should cover major life-threatening diseases.
- Sum assured for the critical illness benefit – Some plans offer a fixed sum assured, while others allow policyholders to choose the coverage amount.
- Claim payout structure – Some insurers pay the critical illness benefit as a lump sum, while others offer staggered payments.
- Premium costs – Adding a critical illness rider increases the premium. Compare costs and benefits to ensure affordability.
- Policy tenure and renewability – Choose a policy that offers coverage throughout your working years and allows easy renewal.
- Waiting period and survival period – Critical illness riders often come with a waiting period before claims can be made. Some policies also have a survival clause requiring the policyholder to survive for a specific period after diagnosis.
Best term insurance plans with critical illness rider benefits
Here are some of the best term insurance plans that offer critical illness rider benefits in India:
1. HDFC Life Click 2 Protect Super
HDFC Life Click 2 Protect Super is a flexible term plan that allows policyholders to add a critical illness rider for enhanced coverage.
- Covers over 40 critical illnesses.
- Offers a lump sum payout on diagnosis.
- Provides an option to increase coverage at significant life milestones.
- Available for a policy term up to 85 years.
2. ICICI Pru iProtect Smart
ICICI Pru iProtect Smart is a popular choice for those looking for a high sum assured and critical illness protection.
- Covers 34 major critical illnesses.
- Offers a lump sum payout without affecting the base life cover.
- Provides additional accidental death benefit option.
- Offers tax benefits under Section 80C and 80D.
3. Max Life Smart Secure Plus
Max Life Smart Secure Plus offers extensive customisation with a critical illness rider for added protection.
- Covers 64 critical illnesses, including heart disease, cancer, and kidney failure.
- Offers a waiver of premium benefit upon diagnosis of a critical illness.
- Provides an option to increase coverage at key life stages.
- Long policy term available up to 85 years.
4. Tata AIA Maha Raksha Supreme
Tata AIA Maha Raksha Supreme offers a robust critical illness rider for policyholders seeking comprehensive protection.
- Covers over 40 critical illnesses.
- Offers a lump sum payout on diagnosis.
- Allows partial withdrawal of benefits for medical treatment.
- Option to extend coverage up to 100 years.
5. Bajaj Allianz Smart Protect Goal
Bajaj Allianz Smart Protect Goal is a feature-rich term insurance plan that includes a critical illness rider for enhanced security.
- Covers 55 major critical illnesses.
- Offers a waiver of premium on critical illness diagnosis.
- Provides an option for whole life cover up to 99 years.
- Allows policyholders to increase coverage as per needs.
Benefits of opting for a critical illness rider
Adding a critical illness rider to a term insurance plan offers multiple advantages:
- Financial security during a medical crisis – The lump sum payout helps cover medical treatment and household expenses.
- Protection against high healthcare costs – The rising cost of medical care makes it essential to have additional financial support.
- No impact on base life cover – The critical illness payout is separate and does not reduce the sum assured of the main term plan.
- Tax benefits – Premiums paid for the critical illness rider are eligible for tax deductions under Section 80D.
- Affordable coverage – Instead of purchasing a separate health insurance plan, a critical illness rider provides cost-effective protection within a term insurance policy.
Conclusion
Choosing the best term insurance plan for 1 crore with a critical illness rider ensures comprehensive financial protection for policyholders and their families. By selecting a policy that covers a wide range of critical illnesses, offers flexible claim options, and fits within your budget, you can secure financial stability during medical emergencies. Carefully comparing plans, understanding hidden costs, and reviewing the claim process will help you make an informed decision. Consider your financial goals and health concerns before choosing the right term insurance plan to safeguard your future.
