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Life Insurance Primers
Friday 21 December 2007
Critical Illness Benefit Rider
Friday 21 December 2007
| The
Critical Illness Benefit rider is a very useful rider to add to your life insurance plan. As per this rider, in the event of diagnosis of a critical
illness during the term of the policy, an amount equal/less to the sum assured
in the critical illness rider is payable to the insured. The diagnosed illness
must be within the purview of the insurance company's defined categories of critical
illnesses. Companies
often have a maximum limit for this rider and a clause that states that
benefits will be paid only if the disease has occurred after six or 12 months
of commencement of the policy. If
a claim is made under the rider, usually the benefit terminates and hence, no
subsequent premiums are charged for this rider. Some policies specify that if the insured dies within two or three months of claiming the sum under critical illness benefit rider, the sum paid under the rider will be deducted from the death benefit.
See also: Accidental Death Benefit Rider Accidental Disability/Dismemberment Benefit Rider Guaranteed Insurability Option Rider Hospital Cash Benefit Rider Life Guardian Benefit Rider Waiver of Premium Rider Term Rider |
