The terminal illness rider can be beneficial for the people who have been diagnosed with a terminal illness. You can add this rider to your life insurance policy to provide financial support for people who are diagnosed with an incurable and usually fatal disease like cancer or AIDS so they can continue their treatments. If you add a terminal illness add-on to your life insurance policy it can give you and your family more financial security and can give an early payout.
What is Terminal Illness Rider?
Terminal illness rider is one of the life insurance add-ons that protect people with life-threatening illnesses such as cancer, heart ailments, kidney failure, paralysis, etc. It ensures that the person who needs it will be able to afford treatment in case they contract a terminal illness. This rider can be added to the base policy at the time of policy issuance or renewal. To qualify for this type of insurance, the person must have a life expectancy of fewer than 10 years.
The purpose of terminal illness riders is to provide financial support for people who are diagnosed with terminal illnesses. You can get an early claim on terminal illness in a life insurance policy that pays out to beneficiaries if the insured person dies within a specified period. If you have been diagnosed with a terminal illness and your life expectancy is less than 12 months, then you can claim this benefit.
Reasons to Buy Terminal Illness Rider
One of the main reasons to buy terminal illness rider is that it covers a wide range of diseases such as cancer, heart diseases, strokes, major organ failure, brain tumors, paralysis, comas, and more. As per the data provided by the WHO more people are dying every year due to cancer and AIDs, and other diseases. So if you add this to a life insurance policy. They provide coverage for the cost of medical care and other expenses related to terminal illness.
- Financial Support: Terminal illness rider provides an extra layer of financial protection to you and your family. This rider provides immediate financial assistance in case the life assured is diagnosed with a terminal illness during the coverage period. Under terminal illness rider, 100% of the rider sum assured will be provided to the life assured in case the life assured is diagnosed with a terminal illness during the policy tenure.
- Constant Premiums: Terminal illness riders are more affordable than life insurance policies. For Purchasing terminal illness rider with your term insurance policy will not change or increase your premium in case you are diagnosed with any of the terminal illnesses that mean this is the way of making no-risk way to gain extra protection.
- Tax Benefits: Premiums are paid towards a life insurance policy and riders qualify for tax exemptions. The life insured can avail of double tax benefits by purchasing the terminal illness benefit rider for up to Rs. 1.5 Lacs under Section 80C and 10(10D) of the Income Tax Act, 1961.
- Early Claim on Terminal Illness: If you add this rider to your life insurance policy you can access your payout early to cover any financial needs while you’re still alive. This is because early pay-out policies have a lower risk of death than traditional policies.
- Lump-Sum Benefit: Terminal illness rider provides lump sum amount to the nominee in case the life assured is diagnosed with a terminal illness during the coverage period. The lump-sum benefit amount will help the life insured to fulfill his/her treatment expenses for the terminal illness.
How Terminal illness Rider Works?
Terminal illness rider is typically included in base life insurance policies and they can help you to receive a larger benefit in the event of your death of life insurance or diagnosed with a terminal illness. . They provide coverage for the cost of medical care and other expenses related to terminal illness. Terminal illness riders are more affordable than life insurance policies. They provide peace of mind and financial security during times of need.
Terminal Illness Benefit Rider Premium Table
| Plan Name |
Premium Per Month |
| Max Life Smart Secure Plus Plan |
Rs.1237/- |
| PNB MetLife Mera Term Plan Plus |
Rs.1406/- |
| ICICI iProtectSmart - Life Plus |
Rs.1710/- |
| Canara HSBC OBC I Select Star |
Rs.1410/- |
*Above mentioned premiums are for illustration purposes. Premium rates may vary as per the data entered by you.*
How to Buy Life Insurance with Terminal Illness Rider at PolicyBachat?
The process of buying a life insurance policy along with the terminal illness rider online has become simple with PolicyBachat. For buying a life insurance plan online please visit our website Following are steps to compare life insurance quotes online in our portal.
- Visit the PolicyBachat Website and select the ‘Life’ tab.
- Enter your Name, Date of Birth, and Mobile Number.
- Click on the ‘View Plans’ button.
- Just Answer 5 Simple Questions.
- Select your ‘Gender’.
- Select ‘YES’ or ‘No’ if you have Smoked or Chewed Tobacco in the last 12 months.
- Select your ‘Annual Income’.
- Select your ‘Education Qualification’.
- Choose your ‘Occupation Type’.
- Enter your ‘Email Address.
- Then click on ‘Start Saving Money.
- Premium Quotes of top life insurance plans will be displayed as per data entered by you and which are suits your requirement.
- Then select the terminal illness add-on cover.
- Purchase the best life insurance policy using online payment.
Eligibility Criteria of Terminal illness Rider:
- Entry Age: Minimum 18 years to Maximum 65 years
- Maturity Age: 70 years
- Sum Assured: Rs. 1 Lac to No limit
- Policy Payment Term: same as policy term you choose
- Premium Payment Mode: Monthly, Quarterly, Half-yearly, yearly
Terminal Illness Rider Exclusions
Exclusions under Terminal illness benefit rider are
- Self-Inflicted Injuries
- Suicidal death
- Congenital infection
- Pre-existing medical condition
- Participation in criminal, dangerous activities
Documents Required for Terminal Illness Rider Claim
Following are the documents required for claiming Terminal illness rider:
- Duly filled Claim Form
- Original Insurance Policy Documents
- Photo ID Proof
- Address Proof
- Medical Reports (mention the diagnosed terminal illness)
- Medical Reports and Certificates
- Bank Account Details
What is the difference between Terminal Illness Rider and Critical Illness Rider?
Terminal illness riders protect you and your family if you are diagnosed with an illness like late-stage disease or cancer that you won’t recover from. Critical illness riders are specially designed to help if you have a severe illness that could be life-threatening, like a stroke or heart attack.
Every life insurance company has its policies and terms and conditions for different riders, to know exactly what your terminal illness rider will cover contact PolicyBachat customer care number where they will help you to choose the best life insurance rider to opt for.
| Terminal Illness Rider |
Critical Illness Rider |
| Covers you against terminal illnesses such as cancer, brain tumors, paralysis, organ failure, Alzheimer's disease, severe burns, etc. |
Covers you against critical illnesses such as cancer, heart attack, stroke, kidney failure, etc. |
| The insured person can claim 25% of the sum assured amount in case he/she needs financial support for the terminal illness treatment. |
The insured person can avail of a lump sum amount along with a one-time fixed benefit during critical times. |
| Get claim amount if diagnosed with a terminal illness. The insured can claim the benefit if the life expectancy is less than 12 months. |
Get a claim if diagnosed with a critical illness, irrespective of the life expectancy. |
| Terminal illness riders are typically offered with life insurance policy at no increase of premium. |
Critical illness riders are not typically included in standard life insurance policies. They can be added to your life insurance policy. |
FAQs of Terminal Illness Rider
Does Life Insurance Pay-out for Terminal Illness?
Life insurance companies are supposed to pay out for terminal illnesses. However, the payout is not always guaranteed. The pay-out is based on several factors including the type of illness, age, and gender of the insured person, their health history, and other factors. If you have been diagnosed with a terminal illness and your life expectancy is less than 12 months, then you can claim this benefit.
What is Terminal Illness in Term Insurance?
Terminal illness is a disease that cannot be cured and the life expectancy is less than 12 months. Term insurance plans can give you lump-sum pay-outs in case of diagnosis of terminal illnesses.
What happens if I am diagnosed with a terminal illness but then live a more extended life than expected?
You can get a percentage of the sum assured amount of your life insurance policy death benefit per the terms of your terminal illness rider. If you then live longer than your initial life expectancy and continue to pay your premiums, your nominee will receive the remaining death benefit when you die.
Who Are Eligible For Terminal Illness Benefit Rider?
People who are suffering from terminal illnesses such as cancer, AIDs, bypass surgery, organ failure, heart diseases, Alzheimer’s disease, blindness, deafness, brain tumors, etc.
Can I Claim for the Terminal Illness Benefit if I buy my Policy after the diagnosis of Illness?
While purchasing life insurance, the policyholder is required to provide details about the medical condition. If you have already been diagnosed with a terminal illness before buying any cover, then the insurance company will reject your application for an early claim on terminal illness to provide you any cover for illnesses.