A critical illness rider is an insurance product in which the insurer is contracted to make a lump sum payment to the insured upon contracting a disease from a predetermined list. The predetermined list has some the name of some of the deadliest diseases which are critical to life. Some insurers also provide the option of periodic payouts so that the patient has more leverage.
The modern day life is fast paced and there is so much stress. Overall health has degraded due to lifestyle issues. Apart from this the lesser I talk about pollution and environmental contamination the better. Diseases like cancer, stroke, and heart attack are becoming very common. And a normal health insurance cover isn’t sufficient to bear their cost.
Thus, I always put lot of stress on critical health rider in my seminars. The more control we take of our lives the better. Be as much protected as you can. It is your life you become its master. Indians are genetically 3 times more prone to death because of heart disease than Caucasians; moreover, cancer has become the second biggest killer in India after heart diseases.
Contracting a critical disease can literally bankrupt a person and there is loss in earnings also as the patient in most cases is not capable to work at that time. What’s more painful than the disease itself is inability to take required treatment. If you want to have peace in your life then be financially well prepared.
Life throws its thunderbolts when we least expect them. This is the way life is, it has been called ‘dukhalayam ashashvatam’ or temporary place of distress in the Bhagawat Geeta, no one can avoid distress to come in our lives but god has empowered us to counter them with our rational thinking and planning.
The critical illness rider is much different than a health insurance plan. In case of a health insurance plan you get claim only when you get admitted in Allopathy hospital, in case of network hospital you get cashless claim settlement of the bill after some deductions or you get reimbursement of the bills paid by you when cashless facility is not available in your plan.
But here when you intimate your insurer that you have contracted some critical disease the insurer pays you a lump sum that can be used as per the discretion of the policyholder. Apart from treatment costs it can also be used for other things. During such disease the earnings of the policyholder get jeopardized, money from the insurer thus gives lot of leverage to deal with that financial crunch.