Life is a journey full of unexpected twists and turns. While we can plan for many things, we cannot always prepare for the unimaginable. This is where insurance comes in, providing us with a safety net and peace of mind.

However, when faced with a terminal illness, where the policyholder’s ticking clock of mortality is confirmed to come to rest in a short span of time, traditional insurance policies may not be enough. This is where the Terminal Illness Rider in Term Insurance comes in, offering a unique and creative solution that can provide financial security during life's most trying moments. Let's explore this powerful tool together and see how it can help you navigate life's challenges with confidence.

What is a terminal illness rider?

A terminal illness rider, also referred to as an accelerated death benefit rider, is an optional addition to  life insurance policy that enables the one to access your policy's death benefit in advance in case he/she is diagnosed with a qualifying serious illness, usually a terminal one. The sum received through the rider will be subtracted from the total death benefit.

Those who opt for an accelerated death benefit rider generally have less than one year to live and utilize the funds for various expenses, including medical treatments, to sustain their life.

How does a terminal illness rider work?

As you all read above this Terminal Illness Rider in Term Insurance is an additional benefit that can be added to your term insurance policy, which offers an early payout in the event of the policyholder being diagnosed with a terminal illness.

Now!! this payout can assist in covering medical expenses, hospice care, and other costs that may arise during this difficult period.

For instance, consider Sushma, a 40-year-old mother of two, who purchased an HDFC term insurance policy with a Terminal Illness Rider. Five years later, she was diagnosed with stage 4 cancer, and the doctors gave her only a few months to live. Fortunately, her policy allowed her to withdraw the sum assured early, which helped her cover medical expenses and provide for her family's financial needs.

This example highlights the importance of the Terminal Illness Rider in Term Insurance as it provides the policyholder with a financial safety net during a challenging time. It enabled Sushma to concentrate on her well-being and health without worrying about the financial burden of her terminal illness.

All in all, the Terminal Illness Rider in Term Insurance is a beneficial and unique feature that can make a significant difference in the lives of individuals dealing with a terminal illness.

Why is Terminal Illness Benefit in Term Insurance Important?

When a person is diagnosed with an illness, the first concern that arises is medical coverage. Medical emergencies can significantly affect an individual's financial standing, especially if they do not have enough savings or insurance coverage.

Treatment for terminal illnesses such as heart and liver diseases is particularly costly, and even small doses of medication or injections for various cancers can require a lot of money. Successful treatment often requires multiple doses, and the expenses for such treatments can run into lakhs of rupees.

Although medical policies cover hospitalization expenses, they do not typically cover the costs of medications. Therefore, it becomes necessary for individuals to explore alternative options for insurance coverage beyond traditional health insurance plans.

Investing in a terminal illness benefit within a term insurance plan can be a wise decision as it provides a lumpsum payout that can be used for comprehensive medical expense coverage and mortality benefits.

Here are some popular term plans offering the option of terminal illness rider from top insurance companies.

Insurance Company Plan Name Minimum Age at Entry Maximum Age at Entry Policy Term Premium Payment Term Terminal Illness Rider Available? Coverage Amount for Terminal Illness
HDFC Life Click 2 Protect 3D Plus 18 years 65 years 5-40 years Regular Pay, Limited Pay, Single Pay Yes Up to 100% of the base sum assured
ICICI Prudential Life iProtect Smart 18 years 65 years 5-40 years Regular Pay, Limited Pay, Single Pay Yes Up to 100% of the base sum assured
Max Life Online Term Plan Plus 18 years 60 years 10-40 years Regular Pay, Limited Pay Yes Up to 100% of the base sum assured

It is recommended that you connect and engage in a conversation with the experts from our team. This will help you conduct thorough research and compare different insurance plans, ultimately enabling you to find the one that best suits your needs.



In the face of a terminal illness, the Terminal Illness Rider in Term Insurance can make all the difference. It provides a safety net that can help ease the financial burden and allow you to focus on what matters most - spending time with your loved ones. By taking advantage of this powerful tool, you can find peace of mind knowing that you have taken steps to protect your family's future. Remember, life is unpredictable, but by being proactive and prepared, you can navigate even the toughest challenges with confidence. So, take the time to consider the Terminal Illness Rider in Term Insurance and discover how it can make a difference in your life.


What is the difference between a terminal illness rider and critical illness rider in term insurance?

Under terminal illness insurance, you can claim a fixed percentage of the sum amount assured if the insured person needs the money for the treatment of a terminal illness. While, under critical illness insurance, you can avail a lump sum amount and a one-time benefit at the time when you need it most.

Can the Terminal Illness rider in term insurance be added to any type of term insurance policy?

The availability of the Terminal Illness Rider in Term Insurance may depend on the insurance provider and the type of term insurance policy. Generally, the rider can be added to level term, decreasing term, and increasing term insurance policies.

What happens to the policy after the terminal illness rider in term insurance is utilised?

After the Terminal Illness Rider in Term Insurance is utilized, the policy continues with the reduced sum assured. 

Can the policyholder cancel the terminal illness rider in term insurance?

Yes, the policyholder can cancel the Terminal Illness Rider in Term Insurance if they no longer require the benefit. The insurance provider may provide a refund of the additional premium paid for the rider, subject to terms and conditions.