What is critical illness insurance?

Critical illness insurance is designed to provide a lump-sum payment to the policyholder upon diagnosis of a predetermined serious illness, such as cancer, heart attack, or stroke. This financial support can help cover medical expenses, loss of income, or other costs that arise as a result of the illness. It is specifically tailored to address the financial burdens associated with serious health conditions, allowing individuals to focus on treatment and recovery without the added stress of their financial situation.

The alternative options do not accurately capture the essence of critical illness insurance. For instance, a policy that covers minor illnesses would not provide the level of financial protection needed during a severe health crisis. An insurance that only covers hospital stays limits the scope of coverage and does not encompass the range of expenses a critical illness may incur, such as out-of-pocket medical costs or lifestyle adjustments. Similarly, a policy that focuses on preventive care does not align with the concept of providing financial compensation after a critical illness is diagnosed.