Riders Dreaded Disease, Medical, PA – Very Important note

Many people are happily living life without having reviewed their insurance policies for a very long time. One very important point to note for those who have packaged additional benefits (Riders) such as Dreaded Disease,  Hospital & Surgical, Personal Accident (PA) and others

If you read the fine print, especially in the older plans, you will discover that in the event of a Total & Permanent Disability (TPD) claim, the basic plan pays out in full and all attaching RIDERS ARE TERMINATED IMMEDIATELY.

Likewise, the same may/will happen in the event of a DREADED DISEASE claim

Now what becomes the most important rider to continue, should you suffer TPD or a Dreaded Disease? The Medical Policy, of course. And can you imagine any insurer willing to begin giving you Medical insurance coverage when you already have a serious medical problem?

In case you conclude that the insurers are being unfair, let’s look at it from another viewpoint. The insurers have computed your premiums based on a certain amount of medical claims from policyholders. If they were to accept policyholder who are almost certain to make claims, don’t you think they would be compelled to raise premiums higher and pass it on to you. Would you, a policy-holder who is in good health, agree to it?

Two points to note here

  • Newer insurance policies have provisions to enable riders to continue despite the basic plan having paidout completely
  • You must evalute your policies from time to time, ideally a minimum of  once every 2 years, to see where you stand as far as newer offerings are available
  • It may be more prudent to take stand-alone Medical Plans that are independent of the consequences of all other policies
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