Critical Illness Rider
A rider paying a lump-sum benefit upon diagnosis of a covered condition such as cancer, heart attack, or stroke.
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A critical illness rider on a life insurance policy typically:
Pays a lump sum to the insured upon diagnosis of a specified critical illness such as cancer, heart attack, or stroke — A critical illness rider pays a lump-sum benefit, often a percentage of the death benefit, when the insured is diagnosed with one of the listed critical illnesses, commonly cancer, heart attack, stroke, or major organ failure. The insured can use the cash as needed during treatment. This differs from a disability income rider, which replaces income, an accelerated terminal-illness benefit, which advances death proceeds for a terminal condition, and a waiver of premium. Payment of the critical illness benefit typically reduces the remaining death benefit.
National insurance concept
A critical illness rider attached to a life insurance policy generally pays:
A lump-sum benefit upon diagnosis of a covered critical illness such as cancer, heart attack, or stroke — The critical illness rider pays a lump sum when the insured is diagnosed with a listed critical illness, typically cancer, heart attack, stroke, or other major conditions, regardless of whether the illness is immediately fatal. The insured receives the money to use for treatment, income replacement, or other needs, and the amount paid reduces the policy's death benefit. It is a living benefit, not a hospitalization income plan and not a premium refund feature.
National insurance concept
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