Chapter 27 - Limited Health Policies - Supplemental Policies

Question 1

Limited Health Policy

Answer 1

Also called supplemental benefit policies - It only covers specific accidents, death, specific diseases, ect.

Accident only policies -
-AD&D
-Travel Accident (hurt from airplane crashes basically). Covers injury and death while traveling on a common travel vehicle, plane, bus, ect. It’s a value and indemnity policy.
-Blanket Policies - covers insureds for accidents only without naming them. Example, A summer camp with new people always coming in and out.

Sickness only policies
Dread Disease - specific illness coverage for a specific illness/disease. Cancer being most common. Typically sold as a supplement policy.
Critical Illness - different from a dread disease as it doesn’t indemnify but is a value policy that simply pays if you have the disease and you can use the money how you wish.