Which of the following best describes critical illness insurance?

Critical illness insurance is specifically designed to provide financial support in the event that an individual is diagnosed with one of the specified serious illnesses outlined in the policy. This coverage typically involves a lump-sum payment that is triggered upon the diagnosis of these critical conditions, which can include illnesses such as cancer, heart attack, or stroke, among others. The one-time payment can be utilized at the policyholder's discretion, whether to cover medical expenses, lost income, or any other costs that may arise due to the diagnosis.

This product is distinct from standard health insurance, which generally covers a more comprehensive range of medical services, including preventive care, minor illnesses, and routine doctor visits. Critical illness insurance specifically focuses on the financial impact of major health events, thereby offering peace of mind to policyholders during challenging times.