Critical illness insurance is a type of insurance policy that provides a lump sum payment to the policyholder in the event they are diagnosed with a specified critical illness or medical condition.
This insurance is designed to offer financial support when individuals are dealing with severe health issues, helping them cover medical expenses, replace lost income, or make necessary lifestyle adjustments.
An individual purchases a critical illness insurance policy, paying regular premiums to the insurance company.
The policy outlines a list of specific critical illnesses or medical conditions that are covered. Common conditions may include cancer, heart attacks, stroke, organ transplant, and other severe illnesses.
If the policyholder is diagnosed with one of the covered critical illnesses during the policy's term, they become eligible to make a claim.
Upon diagnosis, the insurance company provides a tax-free lump sum payment to the policyholder. The policyholder can use this payment as they see fit, whether for medical treatment, paying off debts, or maintaining their lifestyle.
Critical illness insurance provides financial protection during a difficult time, allowing individuals to focus on their recovery and well-being.
It can help cover expenses not met by the National Health Service (NHS) and can provide peace of mind to policyholders and their families.
The terms and conditions of critical illness policies can vary, so it’s crucial to carefully review the policy and understand which illnesses are covered and the extent of the coverage.
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