Which of the following best describes the benefit structure of a Critical Illness insurance policy?

Question: Which of the following best describes the benefit structure of a Critical Illness insurance policy?

Answer options:

• Monthly income based on lost wages.
• Reimbursement of actual hospital and surgical costs.
• A death benefit if the insured dies within 30 days of diagnosis. ✅ A lump-sum payment upon diagnosis of a covered condition and survival of a waiting period.

Correct answer: A lump-sum payment upon diagnosis of a covered condition and survival of a waiting period.

Explanation: Critical Illness (CI) insurance pays a lump sum benefit if the insured is diagnosed with and survives a covered condition for a specific period (usually 30 days). No proof of disability or inability to work is required.