Critical illness insurance pays out a lump sum upon diagnosis of one of the critical illness or when one has undergone a surgical procedure as defined in the policy contract. The standard definitions adopted by insurers for the severe stage of 37 critical illnesses adopted can be found here.
Critical Illness insurance coverage can be obtained as a stand-alone main policy or as an optional rider attached to a main policy. The coverage duration could be for a fixed period (critical illness term insurance) or permanent (whole life critical illness insurance).
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To find out how much Critical Illness Insurance you need, use this simple Critical Illness insurance calculator.