Opt For The Critical Illness Rider

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.