[Solved] Which of the following statements about Critical Illness Insurance is TRUE? - Ans: It pays a lump sum benefit irrespective of actual treatment costs | Insurance Awareness

Insurance Awareness - Health Insurance

Which of the following statements about Critical Illness Insurance is TRUE?

AIt covers all medical expenses related to critical illness treatment

BIt reimburses outpatient treatment costs

CIt provides coverage only for hospitalization expenses

DIt pays a lump sum benefit irrespective of actual treatment costs

Step-by-Step Solution

Step 1: Understand coverage scope
Critical Illness Insurance pays a lump sum benefit on diagnosis, irrespective of actual treatment costs.
Step 2: Analyze options
Options A, B, and C describe health insurance features, not critical illness insurance.
Final Answer:
It pays a lump sum benefit irrespective of actual treatment costs → Option D
Quick Check:
Lump sum payment is fixed, not expense-based. ✅

Quick Trick: Lump sum payment is fixed, not expense-based.

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