Critical Illness Insurance provides a tax-free lump sum upon diagnosis of specified severe but non-fatal conditions. These may include heart attacks, strokes, various types of cancer, and major organ transplants. The range of conditions covered and the exclusions for claims can differ from one insurer to another.

Often, you can add Critical Illness Insurance to a Life Insurance policy, but it’s also available as a standalone policy. Typically, these policies offer a one-time payment, which isn’t meant to substitute regular income. Instead, you can use the funds for medical expenses, mortgage payments, or any other purpose you choose.

Many opt for Critical Illness Insurance when facing significant financial responsibilities, like a mortgage or starting a family. However, this type of insurance can benefit almost anyone at any time, offering financial relief in the event of a serious illness or injury.

If you’re considering replacing your existing Critical Illness Insurance policy, it’s important to proceed with caution. For instance, if you’ve developed any illnesses since your original policy was issued, you might lose certain benefits with a new policy. This is due to the fact that new policies may not cover pre-existing conditions.