What does a Critical Illness policy pay upon diagnosis?

A Critical Illness policy is designed to provide financial support upon the diagnosis of a specific critical illness or medical condition, such as cancer, heart attack, or stroke. When the insured is diagnosed with one of these covered conditions, the policy pays a lump sum to the insured. This lump sum can be used at the insured's discretion to cover various expenses, such as out-of-pocket medical costs, everyday living expenses, or other financial obligations that may arise due to the illness.

The structure of Critical Illness policies is such that they offer a one-time payment rather than continuous payments tied to ongoing treatment or hospitalization. This distinguishes them from other types of health insurance that may provide coverage for ongoing medical expenses or daily hospitalization costs. Additionally, they do not involve premium refunds; rather, they focus specifically on providing immediate financial assistance at the time of diagnosis. This lump sum payment can significantly help alleviate the financial burden during a challenging time for the insured and their family.