What is the primary purpose of critical illness insurance policies?

The primary purpose of critical illness insurance policies is to provide a lump-sum payment upon diagnosis of a serious health condition. This type of insurance is designed to help policyholders financially cope with the costs associated with specific life-threatening illnesses, such as cancer, heart attack, or stroke.

When individuals are diagnosed with one of these critical illnesses, the lump-sum benefit can be used at their discretion. This financial support can cover high medical expenses, serve as income replacement during recovery, or help manage any additional costs related to treatments or lifestyle changes resulting from the illness.

Routine check-ups, comprehensive coverage for all health expenses regardless of the diagnosis, and reducing overall health insurance premium costs are not aligned with the purpose of critical illness insurance. Instead, this policy focuses specifically on providing financial protection in moments of severe health crisis, making it a targeted safety net for policyholders facing significant health challenges.