If one is already covered under a mediclaim policy, should one still go for a critical illness rider with a life insurance policy?

Parul Kohli, Chandigarh

Before making any decision, understand the difference between the two forms of insurance covers. A critical illness rider provides you with the lump sum amount as per the terms of the policy at the time of diagnosis of disease, provided the disease is one of the critical illnesses that stand covered under the policy. There are no other precedents required for it. It is then at the behest of the policyholder whether to take treatment in a hospital or at home. The insured may even postpone the treatment for a later date.

But in a mediclaim, the condition of minimum hospitalisation of 24 hours prevails over almost all the insurers before any claim is even registered under the policy, barring a few exceptions. Subsequent to that, the insurers examine each and every aspect of the claim in view of the policy terms. Only after that, the claim is admitted and the insured receives the payment within the limits of sum insured in the policy.

If the sum insured under your existing mediclaim policy is not enough to cater to the medical expenses in the event of diagnosis of a critical illness, then you may go for a critical illness rider. But, before purchasing the rider you should remember that the rider promises you money only in the event of detection of certain listed diseases (which vary across the insurers). On the other hand, mediclaim insurance does not have any such limitation.

olmdesk@outlookindia.com