Dread Disease policies provide benefits for specified illnesses such as Cancer, Polio, Heart disease and some forms of Hepatitis. Which option correctly reflects this?

• A. Any illness diagnosed by a physician
• B. Specified illnesses such as Cancer, Polio, Heart disease
• C. Only injuries from accidents
• D. All chronic illnesses only

Answer: (B)

Dread disease policies pay a lump-sum benefit when a diagnosed, named illness on the policy’s specified list is confirmed by a physician. The important point is that benefits are triggered only by those listed illnesses, not by any illness, by injuries, or by all chronic conditions. Cancer, polio, and heart disease are common examples of the covered conditions, with some policies also including certain forms of hepatitis. So the best description is that these plans provide benefits for specified illnesses such as cancer, polio, and heart disease.