InsuranceFinancial Glossary
Critical Illness Cover
Definition
A type of insurance that pays a lump sum on diagnosis of specified critical illnesses such as cancer, heart attack, stroke, kidney failure, or major organ transplant. Unlike regular health insurance, it pays regardless of actual hospital expenses.
Why It Matters
Regular health insurance covers hospitalization costs, but critical illnesses also bring income loss, rehabilitation expenses, and lifestyle changes. The lump sum from critical illness cover bridges this gap. It can be a standalone policy or a rider on your term or health plan.