I am 31 years old married with a son and residing in Bidar. I have availed a term life insurance with a critical illness rider for 30 years, which means I will get cover till the age of 61. Should I be looking to purchase another critical illness in some years to get the benefit beyond 61 years or should I be dependent on my savings to cover for major illnesses post 61?
A critical illness cover is very important especially for those in higher age groups. In your case, critical illness cover beyond the age of 61 would be vital to ensure you are adequately covered. A critical illness policy can be bought as a stand-alone policy or as an add-on, popularly known as rider, on a life insurance policy. In fact, some of the health insurance plans come bundled with critical illness, but experts recommend buying a stand-alone policy. 1. It is also important to note that while as a rider a critical illness plan may be a little cheaper because the insurer saves on administrative costs, your critical illness policy is an accompaniment with your life insurance term plan, it will be renewed only till the validity of your life insurance policy. 2. Even if you don’t have sufficient savings to take care of expensive medical emergency, critical illness policies will help you safeguard your financial situation. 3. Usually, a critical illness policy comes with a survival clause of 30 days; some policies, depending upon the ailment, may also extend it to more than 30 days. Also, keep in mind that critical illness plans don’t cover pre-existing ailments. According to new rules, a critical illness plan is renewable for life, but once a claim is made and the sum assured paid in full, the policy stands terminated.