Term Insurance Plan with Critical Illness Rider and Benefits

Q: Does critical illness benefit pay out more than once?

Typically, a term insurance plan with critical illness~ benefit pays out only once, upon first diagnosis of a covered illness. However, the policy will continue with the life cover and other riders (if opted). It’s important to read the policy document carefully to understand how multiple claims can be handled.

Term insurance with critical illness^~ benefit is one of the best combinations of life insurance that you can opt for. Term insurance offers financial security to your loved ones in your absence, supporting them to lead the lives you have envisioned for them. In addition to this, a term plan with a critical illness benefit secures you too, by providing you with protection against the costs of medical ailments. This makes for an ideal policy with many advantages.

What is a critical illness rider?

This is an optional feature you can include in a term insurance plan to strengthen your financial protection. It offers a lump sum payout if you're diagnosed with a serious health condition covered by your policy. Commonly included ailments are cancer, heart attack, stroke among many other.

By choosing a term insurance with a critical illness^~ benefit, you get access to immediate funds for medical expenses. This can help cover hospitalisation, treatments, medications or even adjustments to your lifestyle. Examples of such expenses are keeping a caregiver or adapting your home for mobility needs.

What sets this rider apart is the flexibility it provides. Unlike standard health insurance, the payout can be used as you wish. So, you could pay off loans, support your family or manage recovery costs. With a term life insurance critical illness rider, you are better prepared to handle unexpected challenges without dipping into your savings.

What is term insurance with a critical illness benefit?

A critical illness benefit is an optional add-on in term insurance policies that covers you against the costs of treatment of any of the listed ailments in your policy. The most common life-threatening illnesses include cancer, heart attack, stroke, kidney failure, and other critical illnesses. When you buy term insurance with the critical illness benefit option, you can claim the sum assured on the diagnosis of a critical ailment covered under your plan. You can then use this money to clear hospital bills, ambulance charges, doctor’s fees, medicine costs or however else you deem fit.

How does term insurance with critical illness rider work?

The process is straightforward. Once you’re diagnosed with a critical illness covered by your term life insurance, you can file a claim to receive the sum assured under the rider. This payout can be used to cover a wide range of expenses. From hospitalisation and doctor’s fees to medications and even post-treatment care, you have the freedom to use the amount as needed, no questions asked.

Unlike traditional health insurance, the term insurance plan with critical illness~ benefit provides a one-time lump sum. This is in contrast to health plans covering individual medical expenses. The flexibility allows you to focus on recovery without the burden of medical bills or financial stress.

The payout can also be used to clear loans, maintain your family’s lifestyle, or for any other emergency expenses you may unfortunately face during a critical illness. Simply put, your health challenges don't get a chance to turn into financial roadblocks.

Benefits of Buying Term Insurance with a Critical Illness Cover

A critical illness benefit can offer many benefits, such as:

Lump sum payment without deductions

On the diagnosis of any of the listed diseases in the plan, you can claim instant lump sum payments without any hidden costs and use the money towards getting treatment.

Coverage for medical expenses

You can use the payout without restrictions of any kind and cover all related costs of a medical issue, such as hospitalisation, ambulance expenses, cost of medicines, room rent, and a lot more.

Income replacement

If you lose your ability to work and earn, the claim received from term insurance with critical illness benefit can be used as a substitute for your income. This money can cater to a number of needs and requirements.

Increased survival chances

A term insurance plan with critical illness rider can boost survival chances by giving funds for timely medical treatment. With term insurance with a critical illness rider, you can afford advanced care, improving the odds of healthy recovery. The payout from a term life insurance with critical illness add-on enhances your health and long-term well-being.

More tax^$ benefits

You can enjoy additional tax^$ benefits up to ₹ 7,800/- on premiums paid towards term insurance with a critical illness benefit. This is over and above the ₹ 46,800/- tax^$ saved on your term insurance plan

Who should buy a Term Insurance with a Critical Illness benefit?

The following people can consider buying a term insurance with critical illness benefit:

Self-Employed Individuals

Due to the unpredictable nature of their work, self-employed individuals may not have ample savings for medical expenses. In such a case, term insurance with a critical illness rider can be helpful.

Individuals with Limited Savings

Individuals with limited savings can purchase a term insurance plan with a critical illness rider. The payout received under this benefit can help them cover the expenses related to a medical emergency. Thus, they can use their savings to fulfill other financial goals.

Individuals with a Family History of Critical Illnesses

Individuals with a family history of critical illness may be more susceptible to suffering from the same health conditions. Term insurance with a critical illness cover can offer these individuals peace of mind and the necessary financial support if need be.

Family Breadwinners with dependents

Breadwinners have multiple financial responsibilities, which makes it difficult for them to save for healthcare. Term insurance with a critical illness benefit can be an effective tool for navigating these responsibilities.

Individuals over the age of 40

People over the age of 40 may be more likely to suffer from critical illnesses due to increasing age. Buying a critical illness rider with term insurance can be advised for individuals in this age group.

What are the eligibility conditions for critical illness rider in term insurance?

To avail term insurance with critical illness rider, you need to meet certain eligibility criteria. Typically, the minimum age requirement is 18 years, and the maximum age is 55 years.

You are required you to undergo a medical check-up to assess your health status, especially if you're applying for term life insurance with critical illness benefit. Your lifestyle, medical history, and family health background may also be considered before approval.

Moreover, you need to add this optional critical illness^~ benefit while buying your term insurance plan to stay protected against the listed critical ailments.

How does a critical illness benefit option work?

In order to buy the critical illness benefit, you need to pay a small extra cost over and above your term insurance plan’s premium. After you purchase term insurance with a critical illness benefit, you will receive an instant payout in a lump sum on the first diagnosis of any of the illnesses listed above.

Steps to buy term insurance with critical illness benefit

Here are the steps to purchase a critical illness benefit with term insurance:

Step 1 - Select coverage and policy tenure:
Determine the term insurance coverage you require and choose a policy tenure suitable for your needs
Step 2 - Add critical illness rider:
Opt to add the critical illness rider to your term insurance policy
Step 3 - Check premium:
Review the premium for the term insurance plan after adding the critical illness rider to ensure it aligns with your budget. Make sure to take into consideration the additional coverage provided by the rider.
Step 4 - Pay premium:
Proceed to pay the premium for the term insurance plan with the critical illness rider. You can choose from various payment frequencies, such as monthly, quarterly, semi-annual or annual.

Once the premium is paid, your term insurance plan with the critical illness rider will become active.

Why buy ICICI Pru iProtect Smart Plus term insurance plan?

The ICICI Pru iProtect Smart Plus term insurance plan offers a life cover` of ₹ 1 crore at an affordable premium of ₹ 440^2a p.m. Moreover, you can also attach ICICI Pru Health Protect Rider (optional) at a minimal cost and be covered against 20 or 60 specified critical illnesses~. This can offer you security as well as peace of mind.

In addition to the above, the plan pays out the entire sum assured in case of terminal illness^{^^} so that your financial security is not compromised. You can also opt for an Accidental Death Cover^# (available with Life Plus option), where your nominee will receive an additional payout in case of death due to an accident, subject to a maximum of ₹ 3 Crore.

Frequently Asked Questions

1. Is it worth buying a term insurance plan with a critical illness benefit if I already have health insurance?

While your health insurance may cover you against routine medical expenses, it may not suffice to cover critical illnesses. Critical illnesses can require long-term treatments that can lead to increased expenses. Health insurance may not provide such high sum assured amounts to cover these costs. Therefore, it is advised to compare the coverage provided by both options and then take a call.

2. Can I purchase a term plan with a critical illness benefit after I am diagnosed with an illness?

If you already have a critical illness at the time of purchasing the insurance policy, any claims related to that pre-existing condition would likely be excluded from coverage under the critical illness benefit.

3. How to claim critical illness benefit?

To claim critical illness benefit under your term insurance plan, you must submit a claim after being diagnosed with one of the covered illnesses. You will need to provide a medical report from a certified doctor confirming the diagnosis, along with other required documents such as hospitalisation records. Once approved, the insurer will provide a lump sum payout, which can be used for treatment or other related expenses.

4. Does critical illness benefit pay out more than once?

Typically, a term insurance plan with critical illness^~ benefit pays out only once, upon first diagnosis of a covered illness. However, the policy will continue with the life cover and other riders (if opted). It’s important to read the policy document carefully to understand how multiple claims can be handled.

W/II/0566/2025-26

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Disclaimers

^` Life cover is the benefit payable on the death of the Life Assured during the policy term.

^2a The 1st year online premium is ₹440 p.m. and has been approximately calculated for a 19-year-old healthy male life (occupation: salaried) with monthly mode of payment and premi-ums paid regularly for the policy term of 28 years with income payout with Life Cover of ₹ 1 crore. The premium amounts are exclusive of taxes.

^~ Critical Illness benefit under ICICI Pru Non-Linked Health Protect Rider: Critical Illness rider (CI benefit) is up to life cover value capped at ₹ 1.5 crore (Subjected to underwriting guide-lines). Critical Illness Benefit (CI Benefit) is optional and is payable, on first occurrence of any of the 20 or 60 illnesses covered. Medical documents confirming diagnosis of critical illness needs to be submitted. The benefit is payable only on the fulfilment of the definition of the diagnosed critical illness. The CI Benefit is an additional benefit which means the policy will continue with the life cover and other riders covers even after CI Benefit is paid. The future premiums payable under the policy will reduce proportionately. To know more in about CI Benefit, terms & conditions governing it, kindly refer to rider sales brochure. CI Benefit term would be equal to policy term or 20 years or (75-Age at entry), whichever is lower.

^# Accidental Death benefit (ADB) is up to ₹ 3 crores (Subject to underwriting guidelines). ADB is available in Life Plus option. In case of death due to an accident Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit policy term will be equal to the policy term of death benefit or (85-Age at entry), whichever is lower.

^{^^} A Life Assured shall be regarded as Terminally Ill only if that Life Assured is diagnosed as suffering from a condition which, in the opinion of two independent medical practitioner’s specializing in treatment of such illness, is highly likely to lead to death within 6 months. The terminal illness must be diagnosed and confirmed by medical practitioner’s registered with the Indian Medical Association and approved by the Company. The Company reserves the right for independent assessment. Terminal Illness benefit will not be applicable in case the policy is sourced through POS personnel.

^$ Tax benefits are subject to conditions under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

ICICI Pru Non-Linked Health Protect Rider:

ICICI Pru iProtect Smart Plus:

ADVT: W/II/0576/2024-25

Term Insurance with Critical Illness Benefit

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