What is the primary characteristic of a Critical Illness insurance policy?

Question: What is the primary characteristic of a Critical Illness insurance policy?

Answer options: ✅ A lump-sum payment upon diagnosis and survival of a covered condition.

• Monthly payments to replace lost income while unable to work.
• Reimbursement for hospital stays and prescription drugs.
• A death benefit paid to the beneficiary if the insured dies from a heart attack.

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

Explanation: Critical Illness (CI) insurance is designed to provide a lump-sum benefit if the insured is diagnosed with and survives (usually for 30 days) one of the specific life-altering illnesses covered in the contract. It is not based on the inability to work (disability) or actual medical expenses incurred (health insurance).