What is the primary outcome expected from critical illness insurance?

The primary outcome expected from critical illness insurance is a lump sum payment upon diagnosis. This type of insurance is designed to provide financial support when the insured individual is diagnosed with a specified critical illness, such as cancer, heart attack, or stroke. The lump sum payment allows policyholders to cover medical expenses, adapt their living situations, or manage financial obligations while they focus on recovery without the added stress of financial strain.

The nature of critical illness insurance is distinctly different from other forms of insurance, such as income protection or unemployment benefits, which provide ongoing payments or cover replacement income during job loss. In contrast, the emphasis of critical illness insurance is on a one-time payout, thus enabling individuals to make important financial decisions that cater to their immediate needs upon facing a serious health issue.