Illinois Health Insurance Practice Exam

How is Limited Disease coverage typically sold?

1. By prescription only

2. Through government programs only

3. As an individual policy or as part of an employer-sponsored plan

4. Exclusively online

The correct answer is: As an individual policy or as part of an employer-sponsored plan

Limited Disease coverage is commonly sold as either an individual policy or as part of an employer-sponsored plan. This approach allows consumers to choose coverage that fits their needs, whether they prefer to purchase insurance independently or receive it through their employer as part of a benefits package. This type of coverage can be particularly appealing for employers looking to offer supplemental benefits to their employees. Such plans can help cover specific diseases or conditions that may not be included in standard health insurance, thus providing additional financial security for policyholders. The other options do not reflect how Limited Disease coverage is typically marketed. For instance, while the internet can be a venue for purchasing insurance, it is not the exclusive method, as various other sales channels exist. Government programs usually offer broader coverage rather than limited or specialized plans. The notion of being sold strictly by prescription is also not applicable in the context of insurance policies, which are structured differently than prescription medications or devices.