You pay a premium and take up a term life insurance plan. You insure your life for a sum assured (Your family gets this money on your/policyholders death), if death is within the time period of the policy.
What if you/policy holder are diagnosed with a critical illness such as a heart attack or a stroke? The medical bills would blow away all your savings.
Your term life insurance plan pays a lump sum only if you (policy holder), die within the term of the policy. If you survive a critical illness such as heart attack, the term life plan would pay you nothing.
Your family would struggle to manage daily expenses as all the family savings are exhausted on your medical bills.
Prevention is better than cure .Take a term insurance plan with a critical illness rider benefit.
You pay a higher premium (than what you normally pay), for an additional benefit called rider benefits.
A disease such as heart attack, stroke, cancer, kidney failure, heart bypass surgery, organ transplants, terminal (end stage) liver and lung cancer are called critical illnesses.
The medical bills for such diseases cost a lot of money. If you avail a critical illness rider with your term life insurance plan, you would be paid a lump sum (money given to you for the treatment of the disease).
This money protects your family savings and helps avert a major financial crisis.
You pay an additional premium (over and above the actual premium) for an accidental death benefit rider.
If you/policy holder die in an accident, then your nominee/family gets the death benefit (sum assured in your term life insurance policy).
Your family also gets an amount in addition to the sum assured, as you have an accidental death benefit rider and you/policyholder has died in an accident.
You can take the partial and permanent disability rider as an add on rider with the term life insurance plan. If you/policy holder meet with an accident and are partially or permanently disabled, then a percentage of the sum assured is paid to you over the next 5 -10 years.
The percentage of sum assured and the time it is paid, is decided at the time you avail the plan and is based on the premium.
You/policy holder would have lost money/income (as you would not be able to work) for a certain time after this accident. A permanent disability due to an accident would mean you would no longer be able to work.
Since you/policy holder have survived the accident, the term life plan would not have paid you any money (no survival benefits).
If you take a rider (partial and permanent disability rider), you would get money from the term plan when you need it the most.
You can take this rider along with your term insurance plan. If you (policyholder), die before the term of the plan your nominee/family gets a sum assured. Your family also gets a percentage of the sum assured (say 10% of the sum assured), for the next 5-10 years depending on the terms of the plan.
Always choose a rider depending on your needs.
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