Page 50 - Insurance Times April 2024

additional paperwork or medical tests. However, a rider's What about the premium? A stand-alone policy will be more
premium cannot be more than the base premium of the expensive than the rider premium for the same amount of
term insurance plan. It means the coverage amount will be coverage. Moreover, the premiums will keep increasing
limited and cannot be more than the term insurance cover. every few years. The rider in a term plan will be relatively
cheaper and the premium amount will get locked.
Moreover, in many of the CIS mentioned in the plan, only
advanced stages are covered. For example, a rider in a life "Ideally, a CI rider with a term plan is a better option but if
insurance policy may not give you the payout in case of stage a policyholder is eligible for a low amount of term cover,
1 cancer. the CI cover will be even lesser. In that case, a stand-alone
CI policy will be a better option for adequate CI cover," says
You need to check the type of the rider also. There are two
Sanghavi.
types. "If it is a comprehensive rider, it means the rider
coverage will be in addition to the coverage of the base It is important to note that a rider cannot be taken as an
policy. However, in case of an accelerated rider, the cover add-on during policy renewal in term insurance. If someone
is part of the base cover you buy. Say you buy this rider with has already bought a term cover and is adequately insured,
term insurance. If there is a claim, this amount will be paid she will have no option but to opt for the stand-alone CI policy.
to you, by reducing your base term insurance cover," "A rider can be bought only when you are buying a new term
cautions Chopra. insurance policy. If we get clients who are under-insured, we
get them to buy a new term plan along with a CI rider,
When it comes to standalone CI plans by health insurers,
otherwise we go for a standalone CI policy," she says.
the coverage net is wider and is long term in nature. The
rider in a life insurance plan will lapse after the policy term Even among stand-alone CI policies, it is important to compare
is over. But one can renew a health insurance CI policy for the number of survival days, number of CIS and percentage
the lifetime. of sum insured amount given for minor CIS. (Refer: Mint)

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The Insurance Times April 2024 45