Insurance is a strange instrument. Whenever an individual buys it, he/she inevitably prays that the situation to claim it never arises. Because the very nature of insurance dictates that claims are made only in financial emergencies and injuries, and none would ideally like that such a situation comes by.
Unfortunately, emergencies don’t need your approval. Therefore, it is necessary that one fully equips one’s insurance policy with all the firepower that could be necessary. Else when misfortune strikes, you will be caught like a lame duck. It is in this context that the concept of riders in an insurance policy. In other words, basic health insurance coverage is not enough to foot the bill for the treatment. Therefore, riders become necessary.
What is covered by critical ailment insurance
Riders on term insurance plans actually raise the overall coverage value. One needs to a relatively small amount to add riders to an insurance plan. The most important, from the point of view of an average individual, is critical illness cover. It helps in the most sensitive moments of one’s life – riders offer additional coverage for unforeseen medical expenses in case a critical ailment strikes.
Which illnesses covered by critical illness riders?
As the name suggests, critical illness insurance riders usually cover various kinds of serious ailments. These can be heart attacks, coronary artery bypass surgeries, kidney failure, cancer, organ transplants, aorta graft surgery, strokes, paralysis of limbs, multiple sclerosis etc. Documents of all insurance companies provide detailed list of critical illnesses that are covered by any rider. Each and every word in these policies are significant – so go through them very carefully.
Another collateral benefit: one gets income tax benefits on the premiums paid for critical illness cover. The exemption can be traced to section 80D of the Income Tax Act, 1961. Another point to emphasise is that some policies stipulate a waiting period, which means that the insurance claim becomes valid only if the ailment is diagnosed after a specific time passes after the purchase of the policy-rider.
The overriding importance of insurance has been driven home like never before during the Covid 19 pandemic. The riders make an insurance policy really effective as a policy without riders will not be able to foot the big claims that serious ailments entail. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
