What is a key feature of a "critical illness policy"?

A key feature of a critical illness policy is that it offers a lump-sum payment upon diagnosis of a specified serious illness. This type of insurance is designed to provide financial assistance directly after the policyholder is diagnosed with one of the covered illnesses, which might include conditions like heart attacks, strokes, cancer, and other significant health events. The lump-sum payment can help cover medical bills, lost income, or other expenses that may arise due to the illness, allowing the insured individual to focus on recovery without financial stress.

The other choices do not accurately describe the primary function of critical illness insurance. Coverage for minor ailments is not a characteristic of this policy; instead, it is focused solely on severe, life-altering health issues. Routine medical expenses are typically addressed through health insurance, not critical illness policies. Additionally, while there are policies that may ensure payouts regardless of health status, critical illness insurance generally has specific eligibility criteria and exclusions based on pre-existing conditions. Thus, the correct answer emphasizes the unique benefit that critical illness policies provide.