What protection does a Critical Illness policy require before payment?

A Critical Illness policy typically requires the insured to survive for a specified period after diagnosis before any benefits are paid out. This survival period is usually defined in the policy and might vary among different insurers. The intent behind this requirement is to ensure that the insured has a genuine diagnosis of a serious condition, providing a more accurate measure of the severity and impact of the illness before claim payments are made.

This provision helps to prevent fraud and ensures that claims are only made in cases where the insured is likely to benefit from the policy payout, addressing the financial burdens associated with long-term recovery or treatment. It's crucial for policyholders to thoroughly understand this aspect of their critical illness coverage to manage their expectations and financial planning effectively.