Is it good to buy a disability rider with term insurance?

I’m 27 and I already have term health and life insurance in place. For more comprehensive coverage, I would also like to purchase a disability rider. Please suggest the benefits and how does it work?

-Sagar

Hello Sagar, it’s great that you have already set up a complete safety net. Let’s talk about the Disability Rider – This rider, as the name suggests, provides additional coverage in the event of accidental disability. India remains a hotbed of road fatalities. No one knows what a sudden loss will entail. Even if the policyholder survives a major accident, he is likely to be permanently disabled. Not only does this threaten the family’s financial resources, but it also risks eliminating a regular source of income. It is best to add an accident disability rider to your policy to help you deal with the severity of such a loss. For example, if you choose a rider with a coverage sum of 25 lakh, the insurer will pay you this coverage amount if you become disabled due to an accident.

Hello, I am considering purchasing a critical illness plan, as I currently do not have a critical illness, but for full coverage I would like to add a critical illness plan to my protection portfolio. Please advise how it works and what things to keep in mind before purchasing. I already have a health and term insurance plan in place with adequate coverage of 1 crore and 2 crore respectively.

-Sanjeev

Hi Sanjeev, you have a very comprehensive protection wallet which is great. Talking about the critical illness insurance plan, it gives you maximum benefits while working differently from your regular health insurance plan. When a critical illness, such as heart disease, cancer, stroke, major organ transplant or any other illness covered by the plan, is diagnosed, the insurer is required to pay the full sum insured in a single payment, regardless of the hospitalization costs. The lump sum payment can also be used for other expenses, such as paying off hospital bills, home loan payments, investment bonuses, day-to-day expenses, and other expenses that may arise due to a loss of income while you are unable to work. during the treatment and recovery period. The policyholder can use the lump sum payment to pay for hospital bills, home loan repayments, investment premiums, day-to-day expenses and other expenses that may arise due to loss of income while you are unable to work during the treatment and recovery phase. However, before purchasing a critical illness insurance plan, it is essential that you understand its various terms and conditions. A critical illness insurance plan usually has a waiting period of 90 days from the date the policy is issued. Claims made within 90 days of policy issuance are not approved by the insurance company. Additionally, to file a claim, most insurers require the policyholder to survive at least 30 days after being diagnosed with a critical illness. However, there are fewer and fewer plans on the market that offer coverage from the first day of illness diagnosis.

Questions answered by Sanjiv Bajaj, Jt. Chairman and Managing Director, Bajaj Capital Ltd.

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Earnest L. Veasey