Specified Disease Coverage is a type of insurance designed to provide benefits specifically for the treatment of pre-determined illnesses, most commonly serious conditions like cancer. Unlike traditional health insurance which pays a percentage of covered medical expenses, this coverage usually offers a lump sum payment that can be used for a variety of expenses—including treatment not covered by traditional health insurance, deductibles, and living expenses during recovery.
Features of Specified Disease Coverage
- Predetermined Benefits: The coverage outlines specific amounts that are paid upon diagnosis or for the treatment of the specified diseases.
- List of Covered Diseases: These policies typically cover a list of diseases which is clearly enumerated in the policy documents. Cancer is most frequently covered, but other conditions, like heart disease, stroke, or Alzheimer’s, can also be included depending on the provider.
Benefits
- Helps manage financial risks associated with severe illnesses not typically fully covered by traditional health insurance policies.
- Provides a lump sum that can alleviate economic burdens during critical times, without the restriction of spending it on medical expenses only.
Consideration
It’s important to carefully review what diseases are covered under the policy, as extremities and specifications can differ widely between insurance carriers.
For further understanding and specific rules related to this type of insurance, refer to the Affordable Care Act resources or consult your insurance representative or legal advisor for more detailed information on regulations and policies applicable in your region.
