Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A critical illness rider attached to a life insurance policy generally pays:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
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.
Why the other options are wrong
- B) The rider pays on diagnosis of a listed critical illness, not monthly income for life after any hospitalization.
- C) The death benefit is paid to the beneficiary only upon death; the critical illness rider pays the insured while living.
- D) Return of premium is a separate feature entirely unrelated to critical illness coverage.
Memory hook
Critical illness rider: a lump-sum rescue at the moment of diagnosis — cancer, attack, or stroke.