The correct answer is: B. When the insured is diagnosed with critical illness.
A critical illness rider is a type of insurance policy that provides additional coverage for people who are diagnosed with a critical illness. Critical illnesses are defined as serious, life-threatening conditions that can have a significant impact on a person’s ability to work and earn an income.
If you are diagnosed with a critical illness, the critical illness rider benefit will be paid out to you. This money can be used to cover medical expenses, lost income, or other costs associated with your illness.
Critical illness riders are typically offered as add-ons to life insurance policies. They can also be purchased as stand-alone policies.
The cost of a critical illness rider will vary depending on a number of factors, including your age, health, and the type of policy you choose.
If you are considering purchasing a critical illness rider, it is important to compare different policies and options to find the one that best meets your needs.
Here is a brief explanation of each option:
- Option A: When the life insured dies of a critical illness. This is not the correct answer because the critical illness rider benefit is payable when the insured is diagnosed with critical illness, not when they die of it.
- Option B: When the insured is diagnosed with critical illness. This is the correct answer because the critical illness rider benefit is payable when the insured is diagnosed with critical illness.
- Option C: When the life insured is diagnosed with a illness not covered under the policy. This is not the correct answer because the critical illness rider benefit is only payable for critical illnesses that are covered under the policy.
- Option D: When the life insured assigns his critical illness rider benefit also in favour of assignee. This is not the correct answer because the critical illness rider benefit is payable to the insured, not to an assignee.