What is the main purpose of Critical Illness insurance?

Question: What is the main purpose of Critical Illness insurance?

Answer options:

• To provide a monthly income during recovery.
• To pay for the insured's funeral costs.
• To cover medical expenses not covered by provincial health plans. ✅ To provide a lump sum payment to the insured upon diagnosis of a covered illness.

Correct answer: To provide a lump sum payment to the insured upon diagnosis of a covered illness.

Explanation: Critical illness insurance pays out a lump sum benefit upon the diagnosis and survival (usually for 30 days) of a covered condition, such as cancer, stroke, or heart attack. It is not income replacement.