Often mistaken for Life Insurance, Critical Illness Insurance will pay out if you get one of the specific medical conditions or injuries listed within the policy. Though the insurance covers many categories of illnesses not all variants are included and are usually limited to the most serious conditions. Common illnesses covered include types of cancer, heart attack and stroke. The policy usually ends upon receipt of payment.
There is usually a waiting period of around three months after taking out a critical illness policy in which you cannot make a claim.