Question

What is the benefit of the critical illness rider?

a.

It pays for all the medical expenses of the insured

b.

It pays a lump sum amount to the insured at the time of diagnosis

c.

It pays a lump sum amount to the insured after the completion of the treatment

d.

It provides a regular income to the insured

Posted under IC22 Life Insurance Underwriting

Answer: (b).It pays a lump sum amount to the insured at the time of diagnosis Explanation:The benefit of the critical illness rider is that it pays a lump sum amount to the insured at the time of diagnosis of a critical illness. This lump sum amount can be used by the insured to cover the medical expenses incurred during the treatment of the illness.

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