Illinois Health Insurance Practice Exam

What type of coverage is Limited Disease coverage?

1. Primary coverage for all medical expenses

2. Supplement to other coverages and pays a fix, stated amount for specific diseases

3. Covers all types of illnesses

4. Only covers pre-existing conditions

The correct answer is: Supplement to other coverages and pays a fix, stated amount for specific diseases

Limited Disease coverage is designed specifically to provide financial assistance for the treatment of certain named diseases or conditions, often in the form of a fixed cash benefit. This type of coverage is not intended to cover all medical expenses or illnesses, but rather acts as a supplemental insurance product. In this context, it pays a predetermined amount when the insured is diagnosed with specific diseases outlined in the policy, such as cancer, heart disease, or other listed ailments. Individuals may choose this type of coverage to alleviate the financial burden associated with treatment related to these specific conditions, providing them with additional support alongside their primary health insurance. The other options do not accurately define Limited Disease coverage, as it does not serve as primary coverage for all medical expenses, does not cover all types of illnesses, nor is it limited to pre-existing conditions. Instead, its focus is on specific diseases, making it a valuable addition to an individual's overall health insurance portfolio.