A critical illness insurance policy is an insurance product wherein the policyholder is provider a lump sum of money defined in the contract under the certain circumstance where the person is diagnosed with a critical illness that is also clearly stated in the policy. In certain cases, the policy can be made up in such a way that it ensures a regular monthly payment to the policyholder. Certain surgical procedures are also considered under this insurance coverage.
Life Insurance policies are offering Critical Illness riders which will pay anywhere from $5,000 to $100,000 upon the first diagnosis of a critical illness. Some of these life insurance riders will pay you this benefit up to 3 times over the term of the life insurance policy.