What is a Dread Disease (limited risk) policy designed to cover?

A Dread Disease policy is specifically designed to provide coverage for a variety of benefits associated with certain specified critical illnesses or diseases. These policies typically target serious health conditions such as cancer, heart disease, or other life-threatening ailments, and they offer financial support to help policyholders manage the high costs of treatment and care associated with these diseases.

This type of limited risk insurance does not cover all illnesses in general, nor does it focus on emergency medical care or a wide range of surgical procedures. Instead, it narrows its scope to certain diseases that are deemed "dreaded" due to their impact on health and potential financial burden. By offering benefits specifically linked to these conditions, Dread Disease policies aim to alleviate some of the financial stress of dealing with serious health issues, making option B the most accurate representation of their purpose.