When purchasing a critical illness policy, you select the cover amount (the lump-sum payment you'll receive upon diagnosis) and pay regular premiums to the insurance company. The policy will list the specific critical illnesses covered, which commonly include conditions such as cancer, heart attack, stroke, and organ transplants, among others.

Most critical illness policies have a waiting period, typically 30 to 90 days after the policy becomes effective. If you are diagnosed with a covered critical illness during the waiting period, you will not receive the benefit payment.

If you are diagnosed with a covered critical illness after the waiting period, you must provide the necessary medical documentation to the insurance company to initiate a claim.

Some policies may require the policyholder to survive a specific period after diagnosis (e.g., 14 or 30 days) before the benefit is paid. This is called the survival period.

Once the insurance company approves your claim, they will pay out the lump-sum benefit amount specified in the policy. This payment is generally tax-free and can be used at your discretion to cover medical expenses, replace lost income, pay off debts, or support your family during your recovery period.

Depending on the policy terms, your cover may continue after a claim, with potential adjustments to the benefit amount and premiums. In some cases, the policy may terminate after a claim is paid.