New York Child Abuse Identification and Reporting Practice Exam

What type of plan typically offers benefits for specified illnesses such as cancer or heart disease?

1. Comprehensive Health Insurance

2. Dread Disease Policy

3. Accident Insurance

4. Disability Insurance

The correct answer is: Dread Disease Policy

The type of plan that typically offers benefits for specified illnesses such as cancer or heart disease is known as a Dread Disease Policy. This kind of insurance policy is specifically designed to provide financial assistance in the event that the insured is diagnosed with a critical illness. The coverage is generally focused on severe conditions, allowing policyholders to receive a lump sum payment, which can help cover treatment costs, lost income, or any additional expenses incurred as a result of the illness. Dread Disease Policies are differentiated from comprehensive health insurance, which provides coverage for a wide range of health issues and expenses but does not focus on just a few specified illnesses. Accident insurance, on the other hand, primarily covers injuries sustained in accidents rather than chronic illnesses. Disability insurance provides income replacement for individuals who are unable to work due to a disability but does not specifically address diseases. Therefore, the targeted nature of a Dread Disease Policy makes it the correct answer in this context.