Opt For The Critical Illness Rider
July 10, 2013 Leave a comment
Its a common tendency to automatically opt for the Double Accident Benefit (DAB) rider in case of life insurance policies. Personally I feel it makes sense to similarly adopt the Critical Illness Rider (CI) too.The few extra rupees are probably well spent.Here’s why I think so:
According to a recent study conducted by the private non-life insurer ICICI Lombard, the maximum increment in critical illness incidence rates was experienced in the age bracket of 26-35 years.The vulnerability to illnesses such as cancer among the younger age group is increasing. In this age group, the incidence rate has doubled in the last three years. The study also noted that spike in critical illness incidence rates was more significant in IT and manufacturing sectors.
Other insurers also have a similar story to tell.According to Aviva India,claims for lifestyle diseases like cancer, heart attack and diabetes from people below 40 years of age stood at 23% in 2011-12 and it has shot up to 38% in FY2012-13.Due to a spurt in lifestyle diseases where people are exposed to various risk factors like diabetes, hypertension and cholesterol disorders there is an increase in the number of claims for cardiac diseases and cancer, which are covered under major critical illnesses.
Critical illness riders offer a fixed sum once the illness is diagnosed.They can be a valuable addition to your basic health cover if you contract any serious illness. Your health cover will take care of most of your hospital bills, and pay-outs from critical illness cover can be used to fund medical costs that are not covered,your travel, food, post-treatment recuperation expenses and other long term or permanent expenses such as colostomy pouches.It could also come to your aid should you have to travel abroad for treatment. In case of a critical illness rider the sum insured is paid once any of the illnesses is diagnosed irrespective of where the treatment is taken, at home or abroad.
In fact,if you prefer to take treatment abroad only,consider buying a standalone critical illness policy available from the general insurers.
Indians have been a prudent lot for millenia and risk mitigation has taxed the Indian mind from ancient times. The works of Manu ( Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya ( Arthasastra ) talk about the pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This is a pre-cursor to modern day insurance which is based on the
Here is a story I came across on the internet today.Thought I’d share it with you.
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The Difference Between Life Insurance And Life Assurance
May 21, 2013 2 Comments
Life Insurance provides you with insurance cover for a specific period of time (known as the policy’s “term”). Then, if you were to die whilst the policy is in force, the insurance company pays out a tax-free sum. If you survive to the end of the term, the policy is finished and has no residual value whatsoever. It only has a value if there is a claim – in that context it’s just like your car insurance!So Term Insurance is a Life Insurance product. Read more of this post
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