Financially.site – Critical illness insurance, often referred to as CI insurance, is a type of coverage designed to provide financial protection in the event of a serious illness.
It can be a vital safety net for individuals and families, offering a lump-sum payout upon diagnosis of a specified critical illness.
This guide will delve into the details of critical illness insurance, discussing its benefits, considerations, and why it might be a wise addition to your insurance portfolio.
What is Critical Illness Insurance?
Critical illness insurance is a policy that pays a tax-free lump sum to the insured if they are diagnosed with a covered critical illness during the policy term.
The lump sum payment can be used for any purpose, such as medical expenses, lifestyle adjustments, or even to cover loss of income while recovering.
Commonly Covered Illnesses
While the specific illnesses covered can vary between insurance providers, some common critical illnesses covered by most policies include:
