Critical illness insurance is a type of insurance policy that provides a lump-sum payment in the event that the insured individual is diagnosed with a specified critical illness or medical condition covered by the policy. These conditions typically include serious illnesses such as cancer, heart attack, stroke, organ transplant, and certain types of surgeries.

The lump-sum payment provided by critical illness insurance can be used by the insured individual to cover medical expenses, living expenses, or any other financial needs that may arise due to their illness. Unlike health insurance, which typically covers medical expenses directly, critical illness insurance pays out a lump sum directly to the insured individual regardless of their medical expenses.

Premiums for critical illness insurance policies vary depending on factors such as the age and health of the insured individual, the amount of coverage desired, and the specific terms of the policy. It's essential to carefully review the terms and conditions of any critical illness insurance policy to understand what illnesses are covered, any exclusions or limitations, and the process for filing a claim.

While critical illness insurance can provide valuable financial protection in the event of a serious illness, it's important to consider whether it's the right option for your individual circumstances and to compare policies from different insurers to find the best coverage for your needs.