What is the primary purpose of critical illness insurance?

The primary purpose of critical illness insurance is to provide a lump-sum benefit for serious illnesses. This type of insurance is designed to help individuals financially cope with the high costs associated with a critical illness diagnosis, such as cancer, heart attack, stroke, or other life-threatening conditions. The benefit can be used at the policyholder's discretion, allowing them to cover expenses like medical bills, lost income, or even non-medical costs related to treatment, such as travel or home modifications.

In contrast, covering routine doctor visits pertains more to standard health insurance offerings, which focus on preventive care and day-to-day health needs. Paying for prescription medications is typically involved in prescription drug plans rather than critical illness insurance. Lastly, long-term care expenses are generally addressed by long-term care insurance policies, which cater specifically to the needs of individuals who require assistance with activities of daily living due to chronic illness or cognitive impairment. Hence, the specific aim of critical illness insurance is clearly defined by its provision of a lump-sum benefit to tackle the significant financial impact of serious health issues.