The increasing graph of life-threatening diseases has compelled many people to purchase critical illness insurance. The goal is to protect your family’s and your interests if you face any terminal illness. The policy provides a lump-sum payment upon diagnosing a critical disease, ensuring quality care for yourself and finances to compensate for the loss of income. However, there are two options to get a critical illness plan. Continue reading if you are unclear about which alternative you must choose to safeguard your future.
What Does a Standalone Plan Cover?
A standalone plan is a critical illness policy covering a wide range of fatal diseases. The plan financially protects the insured against the high expense of medical treatment. The following ailments are among those covered by the plan:
- stroke
- Heart attack
- Cancer
- Lung disease
- Organ transplant
- Parkinson’s disease
- End-stage liver
- Major burns
- Muscular dystrophy
- Multiple sclerosis etc.
Even though the number of ailments covered by various companies varies, critical illness cover plans can provide financial assistance for 36 diseases. The payment can be used to offset household expenses, compensate for lost wages, or pay for private medical treatment.
How Is a Policy Add-On Different?
In contrast to a standalone policy, a policyholder with a basic health insurance plan can protect himself against critical illness by obtaining a policy add-on. The critical illness rider is an optional feature to add to your health insurance policy. Let us now look at the differences between the two options.
| Factors | Critical Illness Plan | Critical Illness Rider |
| Coverage | Coverage is extensive | The base policy determine s coverage |
| Sum Assured | Greater flexibility in terms of the sum assured | It cannot exceed the standard policy’s coverage amount. |
| Number of diseases covered | Typically covers 20 or more critical diseases | The coverage is limited, although it varies on the company |
| Premium | Depending on the age and health condition | The premium is relatively low and remains constant during the term of the basic policy. |
| Waiting Period | Depending on the company, the waiting period ranges from 30 to 90 days | There is no waiting period, and the coverage begins from day one. |
| Policy Renewal | Policy needs to be renewed periodically. | There is no need to renew the rider separately. Instead, it is renewed with the base policy. However, if the insurance becomes invalid, the rider cannot be renewed. |
| Documents | To obtain the policy, you must submit all of the required documentation. | No additional documents are required beyond what is already submitted with the base plan. |
How To Choose?
When considering whether to include a rider with your health insurance policy or buy a standalone procedure, think about what is most important to you.
- Premium
If you value both cost and convenience, you should consider obtaining a critical illness rider. In this case, the premium is fixed, and the benefits are nearly identical to standalone compulsory care insurance.
- For Maximum Coverage
You can get adequate coverage by purchasing a standalone policy. Although this coverage is costly and may necessitate the submission of additional documentation and medical reports, it covers a wide range of illnesses.
Buying critical illness insurance is a necessity nowadays. But, finally, it is entirely dependent on your needs and budget. If you believe your current income is insufficient to cover a more significant premium amount, it is best to add a rider to your health insurance policy.