What type of insurance policy pays a lump sum benefit for the loss of sight in both eyes?

The type of insurance policy that pays a lump sum benefit for the loss of sight in both eyes is Accidental Death and Dismemberment insurance. This form of insurance is specifically designed to provide financial compensation for certain types of injuries, including the total and permanent loss of sight. The benefit becomes payable when the insured sustains a qualifying loss due to an accident, which typically includes scenarios such as losing eyesight.

Health insurance generally covers medical expenses and ongoing treatment rather than providing a lump sum for specific accidents or losses. Life insurance offers a death benefit to beneficiaries upon the insured's passing but does not provide compensation for specific disabilities or injuries. Critical illness insurance pays out a benefit upon diagnosis of specified serious health conditions but does not cover the specific loss of function such as sight. Thus, Accidental Death and Dismemberment insurance is specifically tailored for situations involving significant accidental injuries, making it the correct answer.