Critical illness insurance is a type of insurance policy that provides a lump-sum payment if the policyholder is diagnosed with a specified serious illness. Common covered conditions include heart attack, stroke, and certain types of cancer. This financial support can help cover medical expenses, lost income, or other costs during recovery. The purpose of critical illness insurance is to alleviate the financial burden that can arise from a severe health issue. Unlike traditional health insurance, which typically covers medical bills, critical illness insurance offers cash benefits that can be used at the policyholder's discretion.