I am 45 years old married with a son and residing in Bellary. I have availed a life insurance plan with a critical illness rider. I availed this life insurance rider so that if I suffer from a critical illness, I will get money for the treatment of the disease. My friend tells me a critical illness rider has a waiting period and if I do not survive this I will not get the amount. Is this true?
A critical illness rider provides a lump sum in case you get afflicted by one of the specified diseases like cancer, heart attack, kidney failure or a stroke. Your claim becomes payable when the illness has been diagnosed. Claims are only paid if the insured survive a waiting period. The waiting period is between 30 days and 180 days. There are a few critical illness riders available which do not have this requirement. 1. If the person dies within the waiting period, then only the death benefit would be payable. However, if the person dies after the waiting period because of the critical illness, then both amounts becomes payable. 2. Critical illness riders can be accelerated or additional. If a person avails a term life insurance plan for a sum assured of INR 1 Crore and a critical illness rider with accelerated benefit for a sum assured of INR 10 Lakhs and the person survives the waiting period for critical illness, he/she gets the sum assured (INR 10 Lakhs) under the critical illness rider and on death the nominee gets the sum assured under the term plan - amount insurer paid for the critical illness. (INR 90 Lakhs). 3. In case of opting for additional rider, he/she getsINR 10 lakhs on completion of survival period. On death, the nominee will receive INR 1 crore.