Which statement is NOT true regarding a Critical Illness Plan?

• A. It pays a lump-sum upon diagnosis of a specified condition
• B. It covers multiple critical illnesses
• C. Riders may be available
• D. Coverage is limited to a single devastating disease

Answer: (D)

The main idea here is how a Critical Illness Plan works: it provides a lump-sum payment when you’re diagnosed with a covered critical illness, and it’s designed to help with major expenses as you cope with the illness. These plans usually cover more than one condition, giving you flexibility to use the payout for medical costs, lost income, or other needs during a serious illness. Riders may be available to add features or tailor the coverage.

So, the statement that is not true is that the coverage is limited to a single devastating disease. In reality, a typical critical illness plan covers multiple specified illnesses and pays out when any one of those conditions is diagnosed. The other statements align with common features: a lump-sum benefit on diagnosis, coverage of multiple illnesses, and the possibility of riders.