Critical Illness insurance products can be purchased on an individual basis or through a plan offered by an employer. These specialized policies or riders – often provided in addition to or with a standard insurance policy – provide a lump-sum, tax-free payment should a policyholder develop certain severe health conditions, such as:

• Invasive cancer
  
  
• Major heart attack
  
  
• Paralysis
  
  
• Organ transplant
  
  
• Stroke

Because critical illnesses typically incur greater-than-average medical expenses, this insurance helps cover the gap between standard insurance payouts and total costs. Policies are typically relatively low-priced but may cover only a few severe illnesses or health emergencies.