Critical illness insurance provides policyholders with a lump-sum payout when diagnosed with a serious medical condition covered by the policy, such as cancer, heart attack, stroke, or organ failure. Unlike traditional health insurance, which pays for medical treatments and hospital bills, critical illness insurance gives you a one-time payment that can be used however you need – whether to cover medical expenses, pay off debts, fund alternative treatments, or manage day-to-day living costs while you’re recovering. Once you’re diagnosed with a covered illness, you can file a claim, and upon approval, the insurer disburses the lump-sum benefit, allowing you to focus on your recovery without financial stress.