What does "critical illness insurance" provide coverage for?

Critical illness insurance is designed to provide financial protection against specific serious health events that could have a significant impact on an individual's life and finances. This type of insurance typically pays a lump sum benefit upon the diagnosis of covered conditions, which often include major illnesses such as cancer, heart attack, and stroke.

The purpose of critical illness insurance is to help policyholders manage the financial burdens that can arise from serious medical conditions, such as medical treatments, lost income, and other unexpected expenses associated with recovery. By receiving a lump-sum payment, insured individuals can use the funds at their discretion, allowing them to focus on their treatment and recovery without the added stress of financial concerns.

In contrast, routine check-ups and wellness visits are generally covered under standard health insurance, while minor injuries requiring outpatient care and long-term care for elderly individuals fall under different types of insurance products that specifically cater to those needs. Thus, the focus of critical illness insurance is distinctly on the significant financial impacts of severe health crises rather than on everyday medical care or long-term assistance.