Term Insurance 246 views March 31, 2021

A term insurance plan protects your family members financially by offering them a handsome payout should you die during the policy term. Further, rapid advancements have led to the emergence of additional covers with a term plan. These include a critical illness rider that covers you against certain diseases should you get affected by them during the term plan period. You may also get a permanent disability rider to have financial cover in case you get physically disabled after an accident. It’s like having a combo of health and term insurance benefits. However, you need to buy these riders separately. You might ask – how much extra do I need to pay to get a health cover in a term plan? Let’s answer this and more before choosing such a plan.

Term Insurance

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How Does the Combo of Health and Life Work in a Term Plan with a Critical Illness Rider?

A critical illness rider will come with a specified sum assured and premium amount, much like the base term plan. The rider premium amount will be added to the premium of the base term plan, and you will need to pay a combined amount on a specified date. So, if you get diagnosed with any one of the covered critical illnesses during the policy period, the company will pay a lump sum amount.

Post the diagnosis, the future premiums will get reduced or waived off depending on the terms and conditions stipulated by the insurer. Most insurance companies deduct the critical illness benefit amount from the base sum assured. The reduced sum assured as a result translates into a reduced premium.

Premiums of Base Term Plan and Critical Illness Rider of Different Life Insurance Companies

While buying a term plan, you will get a certain sum assured based on your age, income and health conditions. So, your nominee will get that sum assured in case you die during the policy term. For a successful life insurance claim, you need to pay your premium on time. The premium amount for a term plan is dependent on the sum assured, the premium paying term, the age at the time of entering into the policy, etc. Whereas the premium for a critical illness plan will depend on the sum assured of this particular rider, premium paying term, etc.

Term Insurance PlansBase Sum Assured (In INR)Annual Premium of Base Term Plan (In INR)Critical Illness Rider Sum Assured (In INR)Total Premium with a Critical Illness Rider (In INR)No. of Critical Illnesses Covered
Max Life Online Term Plan Plus25 lakh-1 croreStarts from 2,2005-50 lakhStarts from 6,55040
HDFC Click2 Protect LifeStarts from 50,000As specified by the insurerStarts from 20,00,000As specified by the insurerAs specified by the insurer
ICICI Pru iProtect Smart Term Insurance PlanStarts from 1,00,000Starts from 2,400Starts from 1,00,000As specified by the insurer34
Bharti AXA Life Flexi Term Plan10,00,000-25,00,000Starts from 4,260Upto 25,00,000Starts from 8,48534
Bajaj Allianz Life eTouch Online Term Plan25,00,000-50,00,000Starts from 5,000Upto 75,00,000As ApplicableAs specified by the insurer

How Does the Accident Disability Rider Sum Assured Work?

Accidents can lead to either death or physical disability. In the case of the former, you will get the accident rider sum assured amount as agreed upon. But what if you survive and have to deal with a physical disability after an accident? You will get a handsome payout even then if you buy the accident rider along with a term plan. However, insurance companies may stipulate a condition that the disability benefit will be payable only if the insured becomes so within 180 days of meeting the accident.

Like a critical illness rider, here too, you will need to pay extra. So if you do get disabled due to an accident, a fixed rider sum assured for the same will be given to you. After that, the future premiums will get waived off and the policy will continue. If you die during the policy term, the death benefit chosen by you will be payable to your nominee.

Term Insurance PlansAccident Disability Rider Sum Assured (In INR)Total Premium (In INR)
Max Life Online Term Plan PlusLower of Guaranteed Death Benefit or INR 1 Crore per life10,000
HDFC Click2 Protect LifeStarts from 1,00,000
ICICI Pru iProtect Smart Term PlanStarts from 1,00,000Starts from 14,588
Bharti AXA Flexi Term Plan
Bajaj Allianz Life eTouch Online Term Plan Shield PlusUp to 2 CroreStarts from 5,000
Canara HSBC OBC iSelect Star Term PlanUp to 1 CroreWould vary based on the sum assured, policy term, premium payment term, etc.

Some Term Plans Come with Daily Hospital Cash Benefits Too

Some term insurance plans come with daily hospital cash benefits, a health insurance rider that ensures a fixed sum of money for the number of days of hospitalization. Either it could be a flat amount or a certain percentage of the sum insured, depending on the insurer with whom you are dealing. The amount is also payable when you are admitted to an Intensive Care Unit (ICU) or when you undergo surgery. Let’s check out the Daily Hospital Cash Benefits of three term plans shown in the table below.

Term Insurance PlansPayouts
Bharti AXA Life Hospi Cash RiderFixed amount payable for each day of hospitalization

Fixed amount payable in case of admission to ICU

Lump sum benefit in case of surgery
Edelweiss Tokio Life - My Term+Minimum Sum Assured - INR 1,00,000

Maximum Sum Assured - INR 6,00,000
Edelweiss Tokio Zindagi PlusMinimum Sum Assured - INR 1,00,000

Maximum Sum Assured - INR 6,00,000

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