Which type of plans provides specific benefits for conditions like cancer or heart disease?

The correct choice is critical illness plans because these plans are specifically designed to provide financial benefits upon diagnosis of serious health conditions, such as cancer or heart disease. They pay out a lump sum directly to the insured, which can be used for various expenses such as medical treatment, rehabilitation, or everyday costs, alleviating financial strain during a challenging time.

In contrast, Health Maintenance Organizations (HMOs) focus on providing a network of healthcare services to members at reduced costs and typically cover a broad range of medical services rather than specific illnesses. Long-term care insurance is intended to cover long-term care services, including assistance with daily activities, but does not focus on specific illnesses. Term life insurance provides a death benefit to beneficiaries but does not offer benefits specifically for medical conditions, as it is not aimed at addressing health-related expenses during the insured's lifetime. Therefore, critical illness plans are uniquely tailored to meet the needs of individuals diagnosed with specific severe health conditions.