What is typically included in a critical illness insurance policy?

A critical illness insurance policy is specifically designed to provide financial support in the event that the insured is diagnosed with a specified life-altering illness, such as cancer, heart attack, or stroke. This policy typically pays out a lump sum upon diagnosis, which can be used for various expenses including medical bills, treatment costs, or any other financial obligations that may arise as a result of the illness.

This immediate lump sum payment can offer significant relief and flexibility for the insured, allowing them to focus on recovery instead of worrying about financial burdens. The nature of critical illness policies means that they do not cover all health-related expenses as comprehensive health insurance would, nor do they provide income replacement for lost wages or long-term care benefits, which fall under different types of insurance.