Critical Illness Rider

Protect yourself and your loved ones from the financial burden of a serious illness. Get peace of mind and tax benefits with a critical illness life insurance rider.

Protect yourself and your loved ones from the financial burden of a serious illness. Get peace of mind and tax benefits with a critical illness life insurance rider....
Protect yourself and your loved ones from the financial burden of a serious...

Term Life Insurance that Welcomes Change

Life Cover Starting @ just ₹18/day*

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Choose India’s Only Personalised Term Plan

Modify coverage as per your life stages & commitments

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Hassle-Free Claim Settlement

99.38% Claim settlement ratio*

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Smart Income Tax Savings

Save up to ₹54,600* on your taxes

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What is Critical Illness Rider?

A critical illness rider is an optional add-on that policyholders can add to their base life insurance policy. It is one of the most popular riders that provides financial protection against severe and long-term critical illnesses that demand expensive medical treatments. The rider offers a lump-sum payout that can help cover medical expenses, easing financial burdens during a major health crisis or caused by the disease. You can add a critical illness rider when getting a base plan or later during policy renewals.

How does the Critical Illness Rider work?

A Critical Illness rider is like a financial safety net. It's not the same as regular health insurance but rather designed to help you with serious medical conditions that are costly to treat. 
Here's how it works. 
 

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Get Critical Illness Rider
 

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Pay Premiums and Stay Protected 

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Ensure Peace of Mind and Get Tax Benefits on Premiums 

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Get a Lump Sum (if you ever get diagnosed with one of the specific severe illnesses listed in the policy.)

Let's look at an example

Adding a Critical Illness Rider to Your Plan

Reema, a 29-year-old, bought a term plan that provides coverage for a large INR 1 Crore for a 20-year policy term. Later on, she bought a critical illness rider for 10 Lakh and added it to her term life policy to cover the prevalence of various health issues. By choosing this rider, she increased her premiums from 655 Rs to 845 Rs, which remained quite affordable, as you can see.

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Support During Health Crises

Reema's life took an unforeseen twist when she had a stroke, resulting in permanent symptoms (a health concern striking people in their 30s and 40s). During this challenging period, she received the sum assured from her critical illness rider. This was one of the benefits she received that allowed her to attain proper medical care and address the problem of rising costs effectively. What's more? its term insurance plan remains effective until the term insurance policy expires.

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Critical Illness Rider Coverage

A critical illness rider typically covers a set list of serious medical illnesses. However, the specific illnesses covered may vary between insurers. The commonly covered critical diseases are cancer, heart attack, and stroke.

ACKO Life Critical Illness Benefit Rider covers 21 critical illnesses. It includes life-threatening common diseases among women, such as breast cancer, cervical cancer, fallopian cancer and ovarian cancer. 

Treating these illnesses is costly and affects your ability to work and earn money. This rider is like having a financial superhero to help you when battling a serious illness so you can heal and recover without worrying about money matters. 

ACKO Life Critical Illness Rider: List of Covered Critical Illnesses

 

Cancer of Specified Severity Myocardial Infarction (First Heart Attack Of Specific Severity) 
Open Chest CABGOpen Heart Replacement Or Repair Of Heart Valves
Coma Of Specified SeverityKidney Failure Requiring Regular Dialysis
Stroke Resulting In Permanent SymptomsMajor Organ /Bone Marrow Transplant
Permanent Paralysis Of LimbsMotor Neuron Disease With Permanent Symptoms
Multiple Sclerosis With Persisting SymptomsBenign Brain Tumor
BlindnessDeafness
End Stage Lung FailureEnd Stage Liver Failure
Loss Of SpeechLoss Of Limbs
Major Head TraumaPrimary (Idiopathic) Pulmonary Hypertension
Third Degree Burns

8 Benefits of Buying Critical Illness Rider

In case of a critical illness like cancer, heart attack or stroke - the critical illness rider comes to the rescue by providing financial support. The lump sum payout is for you to utilise however you see fit. It could be medical bills, paying off loans or even going on a much-deserved vacation to recover both mentally and physically, the choice is yours. Some of the pros to consider:
 

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Financial Security during times of serious illness 

Critical illnesses like cancer or heart disease are very costly to cure. It allows you to insure yourself against the worst-case scenario - ending up with a huge medical bill - and provides a financial backstop so that you can stay out of savings-draining or debt-inducing collections cases.

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Peace of Mind

Nobody needs more stress when dealing with a serious illness - but the last thing you need to worry about is having enough money. Critical Illness Insurance provides financial stability to allow you to recover without worrying about your money.

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Income Replacement

Your illness can also have an impact on your family, even if you are not the main breadwinner. True to its name, this insurance gives a one-time payout that will assist your family in maintaining itself as it is and cover the daily costs even when you are not in a place to work.
 

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Access to Quality Care

Specialised and necessary long-term treatments are expensive for critical illnesses. This insurance coverage will allow you to receive the best medical help as fast as possible, giving your body the best chance of making a full recovery.

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No Waiting for Pre-existing Conditions

Unlike many health insurance policies in India that have waiting periods for pre-existing conditions, Critical Illness Insurance typically doesn't have such waiting periods. This makes it accessible to most people, regardless of their health history.
 

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Financial Planning Continuity

It acts as a safety net in your financial plan, allowing you to continue working toward your financial goals, such as buying a home or saving for your children's education, even if you face a major health setback.
 

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Affordable Premiums

With the ever-increasing cost of healthcare and the unpredictable nature of life, getting critical illness coverage is a wise decision. Pay an extra small amount above your base insurance premium and stay protected.
 

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Tax Benefits

The premium you pay for your Critical Illness Insurance is eligible for a tax deduction under Section 80D of the Income Tax Act. You can get a deduction of up to Rs. 25,000 per year if you're under 60 years old. If you're over 60, this limit goes up to Rs. 50,000. 
 

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Who should buy a Critical Illness Rider?

Imagine you're a person who works hard to take care of your family and yourself. You're healthy and doing well, but life can be unpredictable. Chronic diseases that affect individuals include cancer, heart diseases, and kidney diseases, among others, despite the fact that an individual may be very much conscious of his or her health, regularly exercising and eating a balanced diet, among other habits. This is where a Critical Illness Insurance Policy comes in.

Breadwinners

By being the breadwinner of the family, one risks being incapacitated from performing his/ her duties if he/ she falls sick. Critical illness insurance can provide money to cover medical expenses and help your family when you can't work.

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People with a family history of serious illnesses

If your parents or close relatives had critical illnesses, the chances of getting the same would be higher. This type of insurance can work to your advantage as it will help you feel safe and secure if you are in the same position.
 

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Self-employed individuals

If you run your own business or work freelance, you might not have the same benefits as salaried employees. Critical illness insurance can cover you during times when you can't work and need expensive treatments.
 

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Individuals without substantial savings

A critical illness can put you in a tough spot if you don't have a lot of savings.  A critical illness rider can help with expenses such as health care costs and other expenses, so you do not have to borrow.
 

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People with high-stress jobs

Stress can contribute to health problems. If you have a high-pressure job, having this insurance can be a good idea because it can provide financial support when you need it most.
 

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To sum it up, if you're the main provider for your family, have a history of serious illnesses in your family, work independently, don't have significant savings, or have a high-stress job. You might want to consider getting a critical illness insurance policy. 

How to buy ACKO Life Critical Illness Benefit Rider online?

Here's how you can easily buy ACKO Critical Illness Rider online.
 

After completing the form and any required medical checkup, you'll need to make the premium payment. As per the IRDAI, the premium rates for the Critical Illness Rider are set at a fixed amount and will not be subject to change or review throughout the policy term.

And that's it! You've successfully purchased a Critical Illness Plan online in India. Remember that having this coverage can provide financial security and peace of mind during challenging times.

What documents are required at the time of claim?

You may need the following documents when raising a claim against your critical illness rider.
 

Identity proof

Claim form (if required)

Test results with the first consultation prescriptions  

Medical certificates confirming the diagnosis and that it is not due to a pre-existing illness
 

Other documents as requested for processing the claim

How to file a claim for a Critical Illness Insurance Policy?

With ACKO, policyholders do not have to struggle through all the steps involved in the insurance claim process. Below are the procedures to follow to raise a claim.
 

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Download the ACKO app and log in

If you haven't already, download our user-friendly ACKO app and log in using your account.
 

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Open your policy and initiate the claim

Within the app, navigate to the claim tab.
 

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Upload the necessary documents and submit

Next, you’ll be asked a few basic questions and requested the essential documents. Take a moment to verify all the details and ensure you have answered all the questions correctly, then proceed to submit your claim. 
 

That’s all! We've made the process hassle-free for your peace of mind.
 

Exclusions of a Critical Illness Insurance Policy

Imagine you have a Critical Illness Insurance policy. It's like a safety net that helps you financially if you get sick with certain severe illnesses. However, there are some situations where this safety net won't catch you, and those are called "exclusions." Exclusions are the things that the insurer doesn’t cover. Here are some of the exclusions of a Critical Illness Rider.
 

Pre-existing Conditions

If you had a medical problem before you got the insurance and it's related to the critical illness you claim, it won't be covered. So, if you have a heart issue and buy the insurance, the insurer won’t pay for heart-related problems.
 

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Waiting Period

It has a waiting period when you purchase the policy; it can be 30 days to 180 days, depending on your policy. You cannot claim any policy benefits during this time period. For instance, the rider won't protect you in the event that you become ill. 
 

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Non-Disclosure

It is important to tell the truth when you buy your policy. Not disclosing your health history or putting down false information can deny the claim. 
 

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Risky Activities

If you are a thrill-seeker doing something risky in your spare time (such as extreme sports) and have an accident, your insurance might not cover that. Do your research before you buy to avoid any surprises during the claim process. 
 

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Experimental Treatments

If you decide to try an experimental treatment for your illness that isn't widely accepted in the medical community, your insurance won't pay for it.
 

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Alcohol or Drug Abuse

If your illness is connected to alcohol or drug abuse, the rider may not cover it. So, it's essential to take care of your health.
 

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Frequently Asked Questions (FAQs)

Here are some common questions about Critical Illness Insurance.
 

Yes, some term insurance plans in India offer a Waiver of Premium (WOP) benefit with Critical Illness riders. This means that if you are diagnosed with a critical illness covered by your policy, you won't have to pay the premiums for the remaining term of the policy, but your coverage continues. It's like a safety net during challenging times.
 

Corporate health plans vary; they are helpful but can be inadequate at times. These plans have restrictions, and it does not necessarily mean that all the targeted critical illnesses will be covered fully. In addition, this coverage can be lost if you switch employers, retire from work, or begin a new job. So, an additional individual critical illness policy ensures extra protection tailored to your needs.
 

The claiming procedure for a critical illness policy varies. However, some of the common documents required are:

  • A claim form
  • Medical certificate that the patient needs special treatment confirming the critical illness diagnosis
  • Original bills and medical records
  • ID and address proof
  • Policy documents

Always check your policy for specific document requirements, and keep these ready for a hassle-free claim process.

The amount of critical illness cover you need varies depending on factors like your age, lifestyle, financial responsibilities, and existing health coverage. As a general rule, consider a coverage amount that can replace your annual income for a few years and cover medical expenses. 
 

Unfortunately, once you're diagnosed with a critical illness like cancer, it's challenging to get new coverage. It's essential to buy critical illness insurance before any diagnosis to ensure you're protected. So, don't wait until it's too late; secure your coverage when you're healthy.
 

Yes, medical tests are usually necessary when applying for critical illness cover. These tests help us assess your health and determine your premium. It's a way to ensure fairness in pricing and coverage. Providing accurate health information is crucial for a smooth insurance experience.
 

In most cases, you can't make multiple claims for the same critical illness under the same policy. Critical illness policies usually provide a lump sum payout upon the first diagnosis of a covered illness. 
 

No, pre-existing conditions are not covered under Critical Illness Insurance.
 

Yes, most insurance companies ask buyers to undergo a medical health check-up as a prerequisite.
 

Most insurers provide a sum of up to rupees 50 lakhs. Kindly read the policy document carefully for detailed information.
 

No, Critical Illness Insurance cover can be availed for one illness only.
 

No, if claimed once, the policy is terminated and cannot be renewed. You must buy a new policy.
 

Most critical Illnesses are covered by Critical Illness Insurance Plans. Exclusions under this category vary from one insurer to another. Kindly read the policy document for more information.
 

No, different insurers provide different benefits and come with varying prices. The best way to find a suitable policy is to compare the plans with other providers.
 

The time taken to disburse the amount post-diagnosis is usually short and can be up to 90 days. This may vary from one insurance company to another.
 

Yes, according to the rule passed by IRDAI - Insurance Regulatory Development Authority of India in 2011, you can transfer your policy from one company to another. Read the policy document for more information.
 

Yes. Critical Illness cover provides a monetary cushion to you and your dependents in life-threatening circumstances and financial hardships.
 

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content, and before making any insurance-related decisions.

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Written by Neviya Laishram

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Reviewed by Vaibhav Kumar Kaushik Author info Icon

A professional Life Insurance writer, editor, and copywriter with a background in magazines, healthcare, education, and insurance.