Which type of policy provides coverage only for specific illnesses such as cancer or stroke?

Which type of policy provides coverage only for specific illnesses such as cancer or stroke?

• A. All medical conditions
• B. Only coverage for specific illnesses such as cancer or stroke
• C. Only accident-related injuries
• D. Only long-term care

Answer: (B)

A policy that provides coverage only for a defined set of illnesses is the critical illness policy. It covers specified conditions such as cancer or stroke, rather than paying for every medical expense or every medical condition. Typically, it pays a lump-sum benefit when one of the defined illnesses is diagnosed, which the insured can use for treatment, rehab, or income replacement. This fits best because the option describes coverage limited to particular illnesses. The other choices describe different kinds of coverage: comprehensive medical expense protection covers many conditions, accident insurance covers injuries from accidents, and long-term care coverage pays for ongoing custodial or chronic care needs, not a narrow list of illnesses.

A policy that provides coverage only for a defined set of illnesses is the critical illness policy. It covers specified conditions such as cancer or stroke, rather than paying for every medical expense or every medical condition. Typically, it pays a lump-sum benefit when one of the defined illnesses is diagnosed, which the insured can use for treatment, rehab, or income replacement.

This fits best because the option describes coverage limited to particular illnesses. The other choices describe different kinds of coverage: comprehensive medical expense protection covers many conditions, accident insurance covers injuries from accidents, and long-term care coverage pays for ongoing custodial or chronic care needs, not a narrow list of illnesses.