Skip to main content

How can you enhance your Insurance cover on your policy?

Buy Gold Mutual Funds

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Call 0 94 8300 8300 (India)

You can opt for either a standalone cover or a riders on your plan

COVERAGE for critical illnesses is increasingly getting attention from individuals. A plain vanilla health insurance helps in most medical emergencies and treatments, but individuals have been exploring additional covers such as the critical illness cover. This cover is made available by life as well as general insurance companies. Standalone critical illness policies are offered by general insurance companies and critical illness riders to a pure protection term insurance policy are offered by life insurance companies.

Once the policyholder has been diagnosed with a critical illness, standalone critical illness policies, as well as critical illness riders, pay the entire sum insured in the rider or the policy to the policyholder.


On payout, a standalone policy lapses. So does the rider in the life insurance policy. Although, the life cover in the base policy continues till maturity.

A standalone critical illness policy from non-life insurer is an annual contract and may be bought any time. In case of life insurance riders, the underwriting of risk is done at the time of policy sale. The policyholder may exit from the critical illness rider at any policy renewal, but he would not be able to enroll for the rider during policy tenure.

Standalone policies have an initial waiting period of 90 days, during which, the policyholder is not covered against any critical illness, while it is 120 days in case of life insurance riders. Further, in case of standalone policies, the policyholder must survive for 30 days after the diagnosis of critical illness, whereas, there is no such restriction in case of the life insurance riders. The documents that are required to file a claim under both options are similar. The insurers ask for doctor's certificate, diagnosis report or test reports.

For a 30-year-old individual, a standalone critical illness policy will cost around Rs 2,809, Rs 3,075 and Rs 3,371 from HDFC Ergo General Insurance, Reliance General Insurance and Bajaj Allianz General Insurance, respectively. The premiums go up to Rs 8,427, Rs 8,674 and Rs 8,989 once the policyholder turns 45 years old.

On the other hand, critical illness rider will cost him Rs 5,500 from Kotak Mahindra Old Mutual Life Insurance for a 30-year term. The critical illness rider premiums are fixed upfront, and the policyholder has to pay the same premium throughout the policy tenure. This premium will, however, be in addition to Rs 8,287 charged for term insurance. The benefit of coverage of critical illness lapses when the term policy expires, while in standalone critical illness policies, you can keep renewing it lifelong or till the maximum age specified by the insurer The list of diseases that are being covered by life insurance riders and general insurance critical illness plans are similar. These include heart attack, stroke, bypass surgery, cancer, kidney failure, paralysis, loss of limbs, major burns and blindness. 

Happy Investing!!

 

We can help. Call 0 94 8300 8300 (India)

 

Leave your comment with mail ID and we will answer them

                        OR

You can write back to us at prajnacapital [at] gmail [dot] com

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

    1. Largecap Funds        Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds     Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds    Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds             Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds              Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Gold Mutual Funds             Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
Read more

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...
Read more

Commercial Paper (CP)

Invest Mutual Funds Online Download Mutual Fund Application Forms Commercial Paper (CP): These are issued by corporate entities in denominations of Rs.2.5mn and usually have a maturity of 90 days. CPs can also be issued for maturity periods of 180 and one year but the most active market is for 90 day CPs.   Two key regulations govern the issuance of CPs-firstly, CPs have to be compulsorily rated by a recognized credit rating agency and only those companies can issue CPs which have a short term rating of at least P1. Secondly, funds raised through CPs do not represent fresh borrowings for the corporate issuer but merely substitute a part of the banking limits available to it. Hence, a company issues CPs almost always to save on interest costs ie it will issue CPs only when the environment is such that CP issuance will be at rates lower than the rate at which it borrows money from its banking consortium. ----------------------...
Read more

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...
Read more

HDFC Children’s Gift Fund

HDFC Children's Gift Fund is Meant for all children below the age of 18 years, Healthy allocation towards equities which is an ideal long-term asset class coupled with debt allocation which provides stable returns, Personal accident insurance for parent/guardian of up to Rs 10 lakhs*, Investments can be made on a lump sum or SIP basis and there is no limit to the number of transactions in any given year. No maximum limit on investment, Benefit from the long term potential of equity while maintaining the stability of debt.   Who can invest:    Parents, Grand Parents, Friends, and Other Relatives.   Lock-in: 5 yrs from investment date of allotment or Until the Unit holder (being the beneficiary child) attains the age of majority (i.e. completion of 18 years) whichever comes earlier. SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating eno...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now