What is the Difference between Critical Illness Rider and Standalone Critical Illness Plan?

Critical illness is a grave disease or medical condition which requires expensive treatments, in most cases. These include ailments such as cancer, organ transplant, third-degree burns, heart attack, coma of specified severity, end-stage kidney failure, multiple sclerosis, etc. Apart from physical and mental distress, it can cause financial hardships as well.

Hence, it is essential to buy a critical illness insurancewhich will support during a medical emergency. Critical illness insurance is availableas two options - standalone policy and critical illness rider. A standalone policy is a plan that provides full coverage for critical illnesses. The critical illness rider is an optional add-on feature you buy along with your mediclaim policy. Both standalone policy and rider provide coverage against critical illnesses.

Let us understand the difference between the two

Features	Standalone Critical Illness Cover	Critical Illness Rider
Coverage	Has awide-ranging coverage	The coverage depends on the base policy on which you are opting for a add-on
Sum Insures	More flexibility with regards to the sum insured	Cannot be more than the coverage amount of the base policy
Premium	Premium charges depend on the age and health conditions of the policyholder	Same for the duration of the base policy.
Tax benefit	Section 80D benefit is available for standalone critical illness policies	Tax benefits under Section 80C/80D available on the premium paid for riders
Waiting period	Usually, a waiting period of 30 to 90 days before the coverage starts	In the case of the rider, the critical illness gets covered from day one

Conclusion

So what should you opt for: standalone policy or critical illness rider? It depends on your health condition and requirements. If you are looking for a policy with better coverage for critical illnesses, the standalone critical illness insurance can be considered. However, if you are fine with less coverage and looking for an add-on feature, then a critical illness rider will be better.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.