A&H Policy ProvisionsQuestion 42 of 716

Tomas adds a critical illness rider to his policy. Six months later he is diagnosed with a covered heart attack and survives. How is the benefit typically paid?

a.A lump-sum cash benefit on first diagnosis of the covered condition
b.A daily indemnity for each day of hospital confinement, paid to the hospital
c.A monthly disability income for the rest of the insured's working life
d.Reimbursement of covered medical expenses up to the rider's stated limit

Explanation

Critical illness (also called dread disease) riders pay a single lump sum upon first diagnosis of a listed condition such as heart attack, stroke, cancer, kidney failure, or major organ transplant. The insured may use the money for any purpose.

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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)
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