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Nov 03, 2011, 04.24 PM IST
ADITI just spent her Diwali bonus on buying herself a whole new look --new shirts, sunglasses, jeans, shoes the works.
Just when you've thought you had it all, people have a way of bringing you back on earth by reminding you of something you don't have and making you horribly inadequate. For instance you've been a good boy and started retirement planning, bought adequate life insurance cover and taken Mediclaim, when someone tells you 'Oh my God! You don't have CI? It's absolutely critical these days."
And again you're left feeling inadequate. But for once they may be right. CI is actually critical. It's the Critical Illness cover. And if you're wondering how is that different from Mediclaim then let us tell you.
We spoke to V Rajagopalan, Chief Actuary of ICICI Prudential Life Insurance "Both Mediclaim and CI rider have their right places. While Mediclaim will cover expenses related to treatment and hospitalization, the CI rider will take care of other circumstances not covered under Mediclaim. Mediclaim is generally more comprehensive in the sense that it covers more medical conditions than the CI rider.
However, this cover is restricted to expenses incurred in hospitalization or for treatment. There are other expenses like traveling expenses of the spouse or in case of serious conditions, even loss of pay. While these are not covered under Mediclaim, the CI rider would prove helpful".
When does one buy the CI rider and when should one opt for Mediclaim? Rajagopalan advises, "Since Mediclaim is an annual contract, premiums would change every year. But the CI rider is a long-term contract and the premium fixed at the time of taking the policy would remain the same throughout the life of the policy. So it would make sense to buy the CI rider at a young age for a long term."
Photograph: Sean Gallup/Getty Images
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