Limited-benefit health policies may be limited to which of the following?

• A. Specifically Limited to a Dread Disease Such as Cancer
• B. Provides Full Medical Coverage
• C. Covers Only Dental
• D. Covers Only Prescription Drugs

Answer: (A)

Limited-benefit health policies are designed to pay for specific conditions rather than provide broad, all-purpose medical coverage. The best example of a typical limited-benefit product is one that pays a benefit if you’re diagnosed with a dread disease such as cancer. This means the policy is not covering everyday medical expenses or a wide range of treatments, but instead provides a defined benefit tied to a particular illness, often as a lump-sum to help with costs associated with that condition.

Full medical coverage isn’t limited by definition, so it wouldn’t fit. Plans that cover only dental or only prescription drugs are also forms of limited benefits, but the classic and most commonly tested illustration is a dread-disease policy like cancer.