Understanding Your Critical Illness Rider

This 20-year add-on to your life insurance policy provides financial support if you are diagnosed with a serious illness. Here is a simple breakdown of how it works.

What This Rider Covers

This add-on provides coverage for 25 serious adult illnesses and 5 childhood conditions for a 20-year term.

Key Benefits

  • Critical Illness Benefit: If you are diagnosed with a covered condition and survive for at least 30 days after, you receive a tax-free, lump-sum cash payment.
  • Early Detection Benefit: You can receive a smaller, one-time payment for certain early-stage conditions. This does not reduce your main critical illness benefit.
  • Return of Premiums (ROPD): If you pass away without ever making a critical illness claim, your named beneficiary will receive a refund of the fees paid for this rider (up to $2,000,000).

How to Qualify for a Payout

  • The illness must be one of the conditions specifically listed in your policy.
  • A qualified doctor (not a family member or business partner) must provide the diagnosis while your policy is active.
  • For most conditions, you must survive 30 days after your diagnosis. Some specific conditions require a longer 90-day waiting period.
  • Cancer Rules: For certain early-stage cancers, you are not covered if you showed signs or symptoms within the first 90 days of starting your policy. Always report any medical diagnosis to the insurer within 6 months.

Important Details

  • One-Time Payouts: The main critical illness benefit is paid only once. After it is paid, your coverage under this rider ends. The early detection benefit is also a one-time-only payment.
  • Who Receives Payment: You (the person insured) usually receive the critical illness and early detection payments. The return of premium payout goes to the beneficiary you named in your application.

When the Rider Ends

Coverage stops if any of the following happen:

  • A critical illness benefit or return-of-premium benefit is paid.
  • The 20-year term reaches its expiry date.
  • The policy is cancelled or lapses due to unpaid premiums.
  • The insured person passes away.
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