Which statement correctly describes the triggers for Cancer Insurance versus Critical Illness Insurance?

• A. Cancer Insurance pays for cancer-specific diagnoses.
• B. Critical Illness Insurance pays a lump-sum on diagnoses of a defined set of illnesses.
• C. Cancer Insurance pays for cancer-specific diagnoses; Critical Illness pays a lump-sum on diagnoses of a defined set of illnesses.
• D. Cancer Insurance and Critical Illness Insurance triggers are the same.

Answer: (B)

The key idea is that triggers differ: Cancer Insurance pays when cancer is diagnosed, focusing specifically on cancer events, while Critical Illness Insurance pays a one-time lump-sum when diagnosed with a defined set of illnesses. This lump-sum, defined-set structure is the hallmark of Critical Illness coverage and distinguishes it from cancer-specific coverage.

That makes the statement describing Critical Illness as paying a lump-sum on diagnoses of a defined set of illnesses the best answer, because it clearly conveys the payout method and the scope of illnesses covered. The other statements either focus only on Cancer Insurance without addressing the Critical Illness triggers, or wrongly imply the triggers are the same.