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9 Advantages of term insurance with critical illness coverage - IIFL Insurance
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Is Term Insurance with a critical illness rider worth buying?

Term plan is becoming a popular choice among new policy buyers because it offers several advantages for them. For example, term plans provide a death benefit to a policyholder’s family, some cover a critical illness feature that helps manage high expenses. With medical expenditures increasing day by day, not everyone can afford them.

That’s why one should choose term insurance with critical illness cover to manage treatment expenses and other medical bills. In addition, it allows a policyholder to ensure more protection from major illnesses to ensure peace of mind.  

Let us take the example of Harish, who works in a corporate firm. He collapsed while returning to his home due to some health issues. Doctors found that he was suffering from a heart disorder after being admitted to a nearby hospital. They said that surgery is the only option for the problem, which will cost nearly Rs 7 to 8 lakhs. His family is in deep trouble now because they can’t arrange the amount quickly. However, the term insurance he bought with critical illness cover enabled him to pay for the surgery.

Advantages of term insurance with critical illness coverage

1. Premium remains the same

The premium amount for a term insurance critical illness plan remains the same throughout the term. This means that the premium doesn’t increase when a policyholder has a critical illness. Furthermore, insurance providers will waive off any future premiums after being diagnosed with a disease. 

2. Wide portfolio of critical illnesses covered

Term insurance with critical illnesses offers coverage for a wide range of critical conditions that help a policyholder minimize high medical expenses. The insurance firms cover as many as 34 illnesses under critical illness, saving your hard-earned money spent on hospitalization and non-hospitalization purposes. 

3. Protection against disability 

Uncertainty can happen in the life of a person that will lead to financial risks. In addition, some illnesses or accidents may cause permanent disability that will affect the quality of life. Having the best illness cover will help a policyholder to get protection from disability caused by accident. In addition, it allows a family to overcome the loss of income due to permanent disability. 

4. Accidental death benefit 

A term insurance plan offers an accidental death benefit for a policyholder, and a nominee will get the sum assured amount after the claiming process. However, the terms and conditions may vary from one insurance provider to another provider, and policyholders should know them in detail. 

5. Increased chances of survival 

It becomes difficult for a family to meet high medical costs in the absence of an insurance policy. A term insurance policy allows a policyholder to undergo treatments in a hospital without any hassles. Moreover, it contributes more to increase the survival rates that will help a lot to lead a problem less life.

6. Lump-sum payment for all illness-related needs

A policyholder will get a lump-sum amount for any of the covered critical illnesses after the diagnosis process. The coverage offers an amount for treatments at all stages of the aliment that help ensure a better recovery. 

7. Income replacement

A critical illness will affect a person’s family financially, and having the best critical illness plan allows a policyholder to ensure a lump-sum amount. In addition, it covers the medical costs and treatment expenses by addressing the essential needs of policyholders. 

8. Easy claim process 

The term insurance with illness coverage enables policyholders to process a claim in simple steps to save more time. It is possible to receive the amount as soon as possible that helps minimize complications significantly. 

9. Short waiting period 

A term insurance policy has a short waiting period of up to 90 days, enabling a person to avail of the benefits soon after being recovered. This, in turn, gives ways to ensure financial stability for a family that will help eliminate high medical expenses. 


Overall, a critical illness rider could be a valuable addition to your term insurance policy. However, it entirely depends on your affordability and requirement to opt for one. To know more details about term plans with critical illness riders, you can visit iilfinsurance.com.

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