Critical Illness with Return of Premium in One Term Plan

Written by : Knowledge Centre Team

2025-12-25

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Your family’s safety is of utmost importance. You should never hesitate to invest in appropriate assets to ensure that your loved ones are safe. This could include things like installing a security system in your home or buying a car with the best available safety features. But what if you are not around to take care of your family?

Apart from the emotional loss, your loved ones may also stare at financial hardships. Learn the difference between both of these riders and know if you can get them in one term insurance plan.

Term Plan with Return of Premium

Term Life with Return of Premium will pay you back the total premiums paid at the end if you outlive the policy term. This policy is a very good deal if you are looking for a protection plan for a short period as it will give you the premiums back.

There are a few advantages to term life insurance with a return of premium:

You get your premiums back: If you outlive the term of your policy, you get all of your premiums back.
It's less expensive than whole life insurance: Term life insurance is generally less expensive than whole life insurance, so you can get more coverage for your money.
It's flexible: You can choose the term of your policy, so you can get coverage for as long as you need it.
It's easy to understand: Term life insurance is an easy product, so it's easy to understand how it works.

Critical Illness Cover

There are a few term insurance plans that provide critical illness coverage to help the policyholders get insured against listed critical illnesses. The rider will help them manage the healthcare expenses if they are ever diagnosed with any of the listed illnesses.

It is a rider that can be added to the existing life insurance plan without any major changes in the plan.
Critical illness coverage in the existing life insurance plans covers various critical illnesses such as cancer, heart attack, kidney failure, stroke, and paralysis and organ transplant.
The rider pays out a lump sum amount on the diagnosis of the critical illness as mentioned in the policy.
You may use the lump sum amount to treat the critical illness or to pay for incidental expenses.
Critical illness coverage in a term plan is a very good option for policyholders as it gives them financial security in the event of any major illness.
The rider also gives them the option to continue their life insurance plan even if they are affected by any critical illness.

Why is it Important to Have a Critical Illness Insurance Rider?

A critical illness insurance rider is an important type of insurance to have because it can help cover the costs of medical care if you become seriously ill.

If your health plan does not cover the full cost of medical care for a serious illness, then a critical illness insurance rider can help cover the gap.
In case a critical illness strikes you, this rider can help cover the costs of treatment or incidental expenses so that you recover and restart your life.

Why is it Good to Have Critical Illness Insurance as a Rider Instead of a Separate Policy?

There are a few reasons why it is better to have critical illness insurance as a rider instead of a separate policy.

First, it is usually cheaper to add a rider to an existing life insurance policy than it is to purchase a separate critical illness policy.
Second, if you have a critical illness rider in your life insurance policy, the death benefit will still be paid out if you die from a critical illness that is not covered by the rider.
Finally, most critical illness riders cover more critical illnesses than most standalone critical illness policies do.

Critical Illness & Return of Premium Rider in iSelect Smart360 Term Plan

You can avail of critical illness coverage with the return of premium option under the iSelect Smart360 Term Plan from Canara HSBC Life Insurance in the following manners:

Add critical illness rider to the term plan with the return of the premium option
Add critical illness rider to your term insurance plan with a policy term exceeding 25 years

Critical Illness Rider in Term Plan with Return of Premium

While a term plan with a return of premium is a limited period term life cover with an option for paying back the premiums at the end of the plan. This will apply to both critical illness rider premium and life cover premium.

However, the only condition is that you have not claimed any benefit under the riders or base policy within the policy term.

How does Critical Illness Rider Work in iSelect Smart360 Term Plan?

In case of the affliction of any of the listed critical illnesses during the policy term but post-completion of the waiting period and survival through the defined survival period:

All future premiums will be waived and all other coverages will continue for the remaining term.
You will be paid a lump sum amount in case you are diagnosed with any of the critical illnesses listed in the policy.
If you survive the term of the policy, all the paid premiums would be returned to you.
Early payment of the sum assured if the policyholder is diagnosed with a terminal illness during the policy term.
Option to increase the sum assured under the policy during the policy term, subject to certain conditions.
The premiums paid under the policy are eligible for tax relief under section 80C of the Income Tax Act.

In India, healthcare expenditure is a major challenge for the middle class and others. Although insurance policies cover substantial expenses, there are several incidental expenses, loss of income etc that can bring additional hardships to the already stressed family.

Riders are affordable and pay out a sum assured on detection of the illness and survival through the defined period, unlike Mediclaim policies which reimburse only the actual expenditure incurred. Return of premiums paid is the icing on the cake because you get covered at literally zero cost.

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Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.