Health Insurance 543 views April 17, 2021

Treatment of critical illnesses can prove costly considering the current healthcare system. In case you are diagnosed with a critical illness (life-threatening diseases), LIC Critical Illness Benefit Rider can come to your rescue! LIC provides this additional rider to enhance your overall protection and protect your finances in case you face a critical illness. Policyholders can attach this rider with their non-linked plan at the start of the policy to enjoy the add-on benefits on their base health insurance plan.

We are showing the key features of the LIC Critical Illness Benefit Rider below that you should check.

  1. Coverage against 15 critical illnesses
  2. Lump sum amount benefit on the first diagnosis of any critical illness
  3. 15 to 30 days grace period
  4. Guaranteed premium rates during the first 5 years of your policy
  5. 15-day free look period

On this page, we will discuss all these features of the LIC Critical Illness Benefit Rider in detail so that you can understand it better. We will also talk about its other aspects such as sum assured, policy term, premium paying term, etc. So, let’s start!

Let’s Understand the Benefits of LIC Critical Illness Benefit Rider in Detail

LIC Critical Illness Benefit Rider is a non-linked, non-participating, individual health insurance rider that will help you reduce your financial burden in case you face a critical illness.

With this rider, you will get a critical illness sum insured in case you are diagnosed with any of the 15 critical illnesses mentioned below.

  1. Cancer of Specified Severity (Term cancer includes Leukemia, Lymphoma and Sarcoma)
  2. Open Chest CABG (Heart Surgery to correct blockage or narrowing)
  3. Myocardial Infarction ( First heart attack of specified severity)
  4. Kidney Failure requiring regular dialysis (End-stage renal disease)
  5. Major Organ/ Bone Marrow Transplant (One of the human organs such as Heart, Lung, Liver, Kidney, Pancreas)
  6. Stroke resulting in permanent symptoms
  7. Permanent paralysis of limbs (Total and irreversible loss of use of two or more limbs)
  8. Multiple Sclerosis with persisting symptoms
  9. Aortic Surgery
  10. Primary (Idiopathic) Pulmonary Hypertension
  11. Alzheimer’s Diseases/ Dementia (Deterioration or loss of intellectual capacity)
  12. Blindness ( Total, permanent or irreversible loss of all vision in both eyes)
  13. Third Degree Burns ( Burns that cover at least 20% of body surface area)
  14. Open Heart Replacement or Repair of Heart Valves
  15. Benign Brain Tumor

Note: With the LIC Critical Illness Benefit Rider, you can only get coverage once during the policy term while the policy is in force. As soon as the critical illness sum assured is payable, your rider will cease to apply.

Grace Period

You will also get a grace period of 15 days ( for monthly rider premiums) and 30 days ( for half-yearly, quarterly and yearly rider premiums) from the due date of premium payment. You can pay the premium within this grace period without any effect on your rider benefits. Also, the premium payment mode will be the same as the base plan with which you are choosing this rider.

Free Look Period

If an individual is not satisfied with the terms and conditions of this benefit rider from LIC, he/she can return the rider within 15 days from the date of receipt of the policy bond by stating the reasons of dissatisfaction.

What is the Sum Assured for LIC Critical Illness Benefit Rider?

Under LIC Critical Illness Benefit Rider, the individual can choose a minimum sum assured of INR 1,00,000. Talking about the maximum sum assured under this rider, it can be an amount equal to the sum assured on death under the base plan that cannot exceed INR 25,00,000.

What are Policy Term and Premium Payment Term Options?

To know the policy term and premium payment term for LIC Critical Illness Benefit Rider, you should check the below table.

Policy Term

  1. Same as under the Base Plan with following limits

  2. Regular Premium Payment - 5 to 35 years

  3. Limited Premium Payment - 10 to 35 years

Premium Payment Term

  1. Same as under the Base Plan with following limits

  2. Regular Premium Payment - 5 to 35 years

  3. Limited Premium Payment - 5 to (policy term -1) years

LIC Critical Illness Benefit Rider Eligibility Criteria

You should also check the eligibility criteria of the LIC Critical Illness Benefit Rider mentioned below.

  1. The minimum age at entry stands at 18 years, while the maximum can be 65 years.
  2. The maximum cover ceasing age is fixed at 75 years. It means, after this age, your cover will cease to exist.

What is Not Covered under LIC Critical Illness Benefit Rider?

Policyholders will not receive any benefits if the critical illness has occurred directly or indirectly due to the following reasons.

  1. If the death occurs within 30 days from the date of diagnosis
  2. Intentional self-inflicted injury or attempted suicide
  3. Alcohol or drugs
  4. War, Invasion, Hostilities, Civil War, Rebellion, Revolution, etc.
  5. Radioactive contamination due to a nuclear accident
  6. Involvement in a criminal act

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