Critical Illness Rider in Life Insurance

What is a Critical Illness Rider?

What is Considered as Critical Illness?

What Diseases are Covered in a Critical Illness Rider?

How Does a Critical Illness Rider Work?

Benefits of Buying a Critical Illness Rider

Here are some of the major benefits that you can avail with a critical illness rider:

Financial Protection Against Critical Illness

A critical illness rider offers financial protection against a range of critical illnesses that may require expensive medical treatment. It provides a lump sum payment to help cover the costs of medical treatment, hospitalization, and other related expenses. Thus, it is an excellent option for individuals who want to ensure that they are protected against the financial impact of a critical illness.

Income Replacement

Being affected by a critical illness affects the individual’s ability to earn. Thus, it might be difficult for the dependent family to deal with financial requirements. In such a case, the extra payout from a critical illness rider, can serve as financial support after paying for the treatment of the illness.

Covers Expensive Treatment for a Wide Range of Illnesses

The critical illness rider covers a wide range of illnesses, as specified in the policy. With this rider in hand, expensive treatments can be afforded, and critical illnesses can be treated.


Critical illness riders are flexible and can be customized to suit your specific needs. You can choose the amount of coverage you need, the duration of the policy and can add it during the policy tenure, on any policy anniversary.

Affordable Premiums

Critical illness riders are relatively affordable, making them accessible to a wide range of individuals. The premiums are based on your age, health, and the amount of coverage you need. They can be added to your base plan with just a nominal additional premium.

Tax Benefits

Premiums paid towards a critical illness rider are eligible for tax benefits under Section 80D of the Income Tax Act, 1961. This can help you save money on your taxes while also ensuring that you have comprehensive coverage against critical illnesses.

Who Should Buy the Critical Illness Rider?

Factors to Consider While Buying a Critical Illness Rider

FAQs about Critical Illness Rider

Can I claim twice for the same illness under the critical illness rider?

No. You can’t claim more than once under a critical illness rider. It pays the claim amount once and then terminates. However, you may consider buying a new critical illness rider after the first one is terminated. 

Can the payout from a critical illness rider be used for any purpose?

While the primary purpose of a critical illness rider is to cover the treatment expenses related to a critical illness, the payout can be used for any purpose. The financial impact of a critical illness can be significant, and the payout from the rider can help ease the financial burden on the policyholder and their family. It can be used to cover medical expenses, repay loans, or any other expenses that may arise due to the illness, thus ensuring the financial stability of the family. 

Do all life insurance policies come with a critical illness rider?

No, critical illness rider is usually an add on that needs to be purchased separately over and above the base insurance plan. 

How is a critical illness rider different from a regular health insurance policy?

Unlike a regular health insurance policy, a critical illness rider provides a lump sum payout upon diagnosis of a critical illness. The payout can be used to cover medical expenses or any other expenses that may arise due to the illness.

What is the eligibility for buying critical illness rider?

For buying a critical illness rider, the eligibility depends on several factors and might also differ across insurers. However, the most common factors include: an age limit of 18-65 years and declaring the pre-existing conditions and lifestyle habits.

What are the documents required for critical illness rider claim?


Most commonly, the following documents are required to claim a critical illness rider:  

  • Claim intimation form 
  • Attending doctor’s certificate
  • Copy of all medical records
  • Original policy certificate
  • Cancelled Cheque

Does term insurance provide critical illness rider?

Yes, you can add a critical illness rider to your term policy for a nominal premium.

What are the common exclusions under critical illness rider?


The most common exclusions under a critical illness rider are:  

  • Pre-existing conditions 
  • STDs, AIDS, HIV 
  • Self inflicted injury or suicide 
  • Substance abuse 
  • Aviation, other than in a commercial aircraft 
  • Adventure sports 
  • War

How is the payout from critical illness rider received by the beneficiary?

After a successful claim settlement for critical illness benefit, the beneficiary receives a lumpsum payout.

Can I buy a critical illness rider once I'm diagnosed with a critical illness?

No. A critical illness benefit usually does not cover conditions for which a person is diagnosed within 2 years prior to purchasing the policy.