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Critical illness benefit rider takes care of unforeseen medical expenses

The Critical illness benefit rider will take care of your medical expenses in event of a critical disease.

Apnainsurance Research Bureau

21 Dec 2007

The Critical Illness Benefit rider is a very useful rider to add to your life insurance plan. As per this rider, in the event of diagnosis of a critical illness during the term of the policy, an amount equal/less to the sum assured in the critical illness rider is payable to the insured. The diagnosed illness must be within the purview of the insurance company's defined categories of critical illnesses.

Companies often have a maximum limit for this rider and a clause that states that benefits will be paid only if the disease has occurred after six or 12 months of commencement of the policy.

If a claim is made under the rider, usually the benefit terminates and hence, no subsequent premiums are charged for this rider.

Some policies specify that if the insured dies within two or three months of claiming the sum under critical illness benefit rider, the sum paid under the rider will be deducted from the death benefit.

See also:

Accidental Death Benefit Rider

Accidental Disability/Dismemberment Benefit Rider

Guaranteed Insurability Option Rider

Hospital Cash Benefit Rider

Life Guardian Benefit Rider

Waiver of Premium Rider

Term Rider