Which statement is NOT true regarding health insurance policies that provide limited benefits?

• A. Only Persons Under the Age of 65 Are Eligible
• B. Coverage May Be Limited to a Specific Dread Disease, Such as Cancer
• C. Benefits May Be Paid on a Reimbursement or Indemnity Basis
• D. Coverage May Be Limited to a Specific Accident

Answer: (A)

Limited-benefit health policies are designed to pay for specific risks with fixed benefits rather than broad, all-encompassing medical coverage. They often cover a defined danger like a dread disease or a particular accident, and the benefit is usually a cash amount rather than paying the actual bills. Benefits can be issued as reimbursement of expenses or as a flat indemnity payment, depending on the plan’s design. Age alone does not define eligibility for these products, and many providers issue limited-benefit policies to a wide range of ages (subject to underwriting). So the statement claiming that only people under 65 are eligible isn’t accurate. The other statements reflect common features of limited-benefit policies: coverage for a specific dread disease, a choice of reimbursement or indemnity payments, and coverage limited to a specific accident.