What type of policy typically covers only specific illnesses?

Critical illness insurance is specifically designed to provide coverage for a select range of serious conditions, such as cancer, heart attack, and stroke. This type of policy is focused on significant illnesses that come with high treatment costs or that may lead to a long-term inability to work. The benefit is typically a lump sum payment upon diagnosis of one of the covered conditions, which can then be used by the policyholder for any purpose, such as medical expenses or other financial obligations.

In contrast, comprehensive health insurance generally covers a wide array of healthcare services and treatments, including preventive care, hospital stays, and various medical procedures. Major medical insurance, while also covering a broad range of medical expenses, usually pertains to high-cost incidents and can involve both inpatient and outpatient care, further distinguishing it from critical illness insurance.

Accidental death insurance provides benefits solely in the event of the policyholder's death due to an accident, and does not provide any coverage for illnesses or conditions, making it fundamentally different from critical illness insurance. Therefore, critical illness insurance stands out as the type of policy that specifically addresses a limited set of identified severe health conditions.