Critical Illness Rider in Term Insurance – A Detailed Guide


5 min read

Updated on Feb 27, 2023

If there is any certainty in life, it is that it does not come with any guarantee. Our lives are indeed unpredictable because of which we must take certain steps to ensure the well-being and security of our loved ones, in case of our demise. One of the means of doing so is taking a term insurance policy of adequate coverage. The trouble with many term insurance policies, however, is that they may only grant the nominee the benefits after the policyholder has died. Therefore, events, where the policyholder might incur a huge medical expense before his death, may put additional financial hardships on the family. To counter such an event, it is recommended that you expand the coverage provided by your term insurance policy with a suitable rider such as a critical illness rider.

Popular Term Insurance Companies

What is a Critical Illness Rider in Term Life Insurance Plan ?

Critical illness rider is additional coverage that you can add to your term insurance policy by paying an extra premium. If the policyholder is diagnosed with a critical illness, the family gets a lump sum amount. A critical illness plan provides coverage against diseases such as cancer, heart diseases, tumor, kidney failure, and many more.

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Eligibility Criteria to buy a critical illness rider

To buy a critical illness rider, one has to be within the eligibility criteria as mentioned below:

Parameters Eligibility
Minimum entry age 18 years
Maximum entry age 65 years
Maximum maturity age 75 years
Sum assured Minimum – Same as the sum assured of the base policy

Maximum – No Limit

Waiting period 90 days
Survival period 30 days
Coverage period Same as life insurance policy term
Premium payment term Regular pay or limited pay  for 5 and 10 years
Premium payment mode Same as the base policy

Read More: Is Critical Illness Cover Included in Term Insurance Plans?

Documents you need for a critical illness rider?

You need to submit certain documents while registering a claim for a critical illness rider. The documents include:

  • Filled Claim Form
  • Original Policy Documents
  • Policyholder’s Address Proof
  • Policyholder’s Photo ID Proof
  • Medical Reports Attending Medical Practitioner’s Certificate
  • Medical Test Reports (depicting the life assured’s diagnosed illness)
  • Bank statement/canceled cheque copy.

term insurance

Benefits of having a critical illness rider

A critical illness rider surely comes with many benefits. A few of them are mentioned herein below:

  • A critical illness rider works as a replacement for income
  • The medical expenses can be well taken care of
  • You get coverage for illnesses such as cancer, organ transplant, heart attack, paralysis, kidney failure, bypass surgery, and stroke
  • You will be able to avail of double tax benefits.

Factors to consider while buying a critical illness rider

Keeping certain things into consideration will make it easier to take an informed decision about buying a critical illness rider. Here are some of them:

  • You can pay the installments in premium
  • The benefit amount paid is equal to the selected critical illness cover
  • In case of death of the policyholder or total permanent disability, the chosen sum assured amount is payable
  • The benefit is paid to the insured during the first diagnosis itself
  • The policyholder can avail of tax benefits under Section 80C and 80D of the Income Tax Act.

3 Popular Term Insurance Plans for Critical Illness

The best term insurance policies that come with critical illness cover are discussed herein below:

1. DHFL Pramerica Flexi Term

Insurer: DHFL Pramerica Term Insurance Company

It is a financial protection plan that can be customized. It is one of the best term insurance policies in India that one can buy to safeguard the future of their family. Under this plan, you can add a booster to the life cover as per the changing stages of life. Also, you will be able to choose from five protection options, which include Life Boost, Life Cover, Life Health Hike, Life Smart Step Up, and Life Total.

2. Bharati AXA Flexi Term

Insurer: Bharti AXA Term Insurance Company

The policy offers flexibility to choose from three different life coverage pay-out options. The insured can get a one-time payment of the sum assured. The payout is for 15 years and in every successive year, the income increases by 10%. However, half of the sum assured is offered in lump sum amount at the death of the insured. You can choose from three critical illnesses cover while signing up for the policy. The three critical covers are Major Illness Cover which covers 15 major critical diseases, Comprehensive Cover which covers 34 critical diseases, and Heart & Cancer Cover which covers 9 critical diseases for heart and cancer.

3. Bajaj Allianz e-Touch Online Term

Insurer: Bajaj Allianz Term Insurance Company

It is a comprehensive term insurance plan in which along with premium waiver benefits, you will also get health, life, and accidental insurance. The plan offers protection to the insured against various odds. The several variants that the plan comes with include Shield, Shield Super, Shield Super, and Shield Supreme.

Apart from these, there are several other term insurance plans with which you can get critical illness riders also. To get an estimate of the premiums you have to pay for the term insurance plan, you can even use a term insurance policy calculator. While doing all these, do not forget to compare the various term insurance plans to find the best one for you and your family.

Also read: Term Insurance Plans for Senior Citizens | What Happens if You Stop Paying Life Insurance Premiums?

Found this post informational?

Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.


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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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