Dread Disease policies provide benefits for which category of illnesses?

• A. All illnesses
• B. Specified illnesses such as Cancer, Polio, Heart disease and some forms of Hepatitis
• C. Only injuries from accidents
• D. Only chronic illnesses diagnosed after age 65

Answer: (B)

Dread Disease policies are designed to pay a lump-sum benefit when the insured is diagnosed with a set of predefined serious illnesses. This means the policy lists specific conditions that trigger the payout, rather than covering every possible illness. The examples—cancer, polio, heart disease, and some forms of hepatitis—illustrate the idea that only certain serious diseases are covered, not all health issues. The payout is typically a one-time amount that the policyholder can use as they see fit, regardless of medical bills, making these policies especially helpful for dealing with the financial impact of a major diagnosis. This focus on predefined illnesses distinguishes dread disease coverage from broader health plans, from coverage that only addresses injuries, and from age-based limitations.