What are "critical illness" insurance policies designed to do?

"Critical illness" insurance policies are specifically designed to pay a lump sum benefit upon the diagnosis of certain serious illnesses, such as cancer, heart attack, or stroke. This type of insurance provides financial support during a challenging time when an insured individual is facing a major health crisis. The lump sum benefit can be used for various expenses, including medical bills not covered by health insurance, mortgage payments, or even everyday living expenses, allowing the policyholder to focus on recovery without the added stress of financial burdens.

Preventive care, routine medical expenses, and general health services are fundamentally different concepts that do not align with the purpose of critical illness insurance. Preventive care aims to prevent diseases, routine medical expenses cover standard healthcare costs, and general health services pertain to overall health management, none of which specifically address the need for financial assistance triggered by life-altering critical conditions.