Despite taking both life and health insurance policies, policyholders are suggested to choose a serious illness rider. This is because it helps policyholders manage their finance well in case of an event.
Those who are not aware, a serious illness is associated with life insurance policy and provides financial security against serious life-drugs.
This is how it works
During the policy period, if any specific diseases are detected, the insurer releases the amount as a lump sum. This money can be used for anything including treatment, compensation for income loss, hospitalized, among others.
This amount is given regardless of total medical expenses. And this money is only once disabled. The list of serious diseases is given in the policy document.
These commonly include cancer (specified phase), heart attack, stroke, kidney failure, organ transplant, paralysis, multiple sclerosis and coronary artery bypass surgery.
Why should you choose its option?
I. It helps you in club health insurance and life insurance. With life insurance, you can get health insurance cover, only in relation to serious illness.
Ii. It is unrelated to hospitalized and other expenses. This means that even if the hospitalized expenses are reduced – policyholders are entitled to receive a lump that they can use for various expenses.
Iii. It provides financial assistance for expensive medical treatment.
Iv. This rider pays outright for flexible use.
V. There is no need to submit a medical bill to be able to claim.
Vi. Compared to standard health insurance policies, a premium charged for serious illness is low.
When should you take it?
If you have family history of serious diseases, this policy is beneficial and you are the only breadwinner. It is also understood that there is less coverage in your health insurance.
However, if you have a comprehensive health insurance scheme, which has a high insurance, this rider may be unnecessary.
Meanwhile, some experts do not support the idea of buying serious illness with life insurance.
“It is better to buy a standalone serious illness scheme than a rider. This is because standalone schemes are far wider that are riders. In particular, they will cover more diseases, many of which do not need to be hospitalized.
