Critical illness insurance coverage is a type of insurance that provides financial benefits to policyholders in the event they are diagnosed with a critical illness such as cancer, heart attack, stroke, or other specified illnesses.
This type of insurance policy pays a lump-sum benefit directly to the policyholder, which can be used to cover expenses such as medical bills, lost income, and other out-of-pocket costs. The benefit amount is usually a fixed amount, which is agreed upon at the time the policy is purchased.
Critical illness insurance policies typically have a waiting period before the benefit is payable, and the policyholder must survive the waiting period in order to receive the benefit. Some policies may also have exclusions or limitations on certain illnesses or treatments.
This type of insurance can be purchased as an individual policy or as an add-on to existing health insurance. It is important to note that critical illness insurance is not the same as health insurance, it is intended to provide financial support in addition to health insurance coverage.