Dread Disease policies primarily provide coverage for what type of conditions?

Dread Disease policies are specifically designed to provide coverage for certain serious medical conditions, often referred to as "specific diseases." These policies are not intended to cover general health issues, chronic illnesses broadly, or accidental injuries. Instead, they focus on high-cost diseases such as cancer, heart disease, stroke, and severe medical conditions that can lead to significant financial burdens.

The purpose of Dread Disease insurance is to alleviate the financial impact of these specific diagnoses by offering lump-sum benefits or additional resources to policyholders, enabling them to manage the expenses related to treatment and recovery. This targeted approach allows individuals to better prepare for the financial realities of dealing with critical health events. Consequently, the emphasis on covering defined diseases is what makes this type of insurance distinct from more general health coverage or policies that address a wider range of medical needs.