What is the definition of Critical Illness Insurance?

Critical Illness Insurance is a type of individual health insurance that provides the insured person with a lump-sum benefit in case the person is diagnosed with an illness that is specified in the contract. Critical Illness pays a lump sum directly to the insured person if he has a critical illness such as heart attack, stroke, kidney failure, cancer that has become life threatening and so on.

There are also some policies that pay a certain portion of the face amount (say 30%) for diagnosis of a disease that is less critical or less serious. Even if the illness does not result in the insured being disabled, he still stands to get the lump sum.  

The Critical Illness Insurance is commonly a rider to another insurance product, such as a disability income policy or a life insurance policy. The claim for this insurance is only payable when the insured survives 30 days after being diagnosed. There is also a Waiting Period before claims can become payable.

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• Captive Agent
• Blanket Insurance
• Businessowners Policy / BOP
• Employer’s Liability