Which insurance type provides a lump sum upon diagnosis of specific serious conditions?

Critical illness insurance is designed specifically to pay out a lump sum upon the diagnosis of certain specified serious medical conditions, such as cancer, heart attack, or stroke. This type of insurance helps the policyholder cover costs associated with their illness, which may include medical expenses, mortgage payments, or other financial obligations that could arise during their recovery period.

Unlike income protection insurance, which offers a percentage of the policyholder's income if they are unable to work due to illness or injury, critical illness insurance provides a one-time payment that can be used at the policyholder's discretion. It focuses on the financial impact of serious, often life-threatening illnesses, providing immediate financial relief and stability during what can be a challenging time.

Term assurance is primarily life insurance that pays out only upon the death of the policyholder during the term of the policy, so it does not apply in cases of serious illness without death. Accident, sickness, unemployment insurance, on the other hand, generally covers loss of income due to injury or unemployment but does not provide a lump sum for specific serious conditions.

Thus, critical illness insurance is the correct answer for providing a lump sum upon diagnosis of specific serious conditions, as it is tailored to address the financial needs that arise from such health challenges.