What type of insurance does Mike likely have if he receives a lump sum benefit for losing sight in both eyes?

Receiving a lump sum benefit for losing sight in both eyes suggests that Mike has Accidental Death and Dismemberment (AD&D) insurance. This type of insurance specifically covers losses resulting from accidental injuries, which can include the loss of limbs, sight, or in some cases, death. The lump sum payment is typically predetermined in the policy and is designed to offer financial assistance following such catastrophic injuries.

In contrast, life insurance pays out a benefit upon the death of the insured but does not address specific injuries like vision loss. Disability insurance provides income replacement when a person is unable to work due to a disability, but it does not typically offer a lump sum payout for specific events. Critical illness insurance offers a benefit when diagnosed with a severe health condition, but again, it does not cover the loss of specific body functions in the manner that AD&D does. Therefore, the provision of a lump sum benefit for the loss of sight aligns closely with the parameters of Accidental Death and Dismemberment insurance.