What is specified dread or disease coverage designed to do?

Specified dread or disease coverage is specifically designed to address only certain serious or catastrophic illnesses, such as cancer, heart disease, or major organ transplants. This type of insurance typically pays out a lump sum or provides financial support for treatment once a policyholder is diagnosed with one of the specified diseases outlined in the policy.

The focus on catastrophic illnesses means that the coverage is not intended for minor health issues, which may be addressed through standard health insurance plans. This specialization allows for a concentrated benefit that can help alleviate financial burdens during significant health crises. However, it does not provide extensive healthcare benefits across a range of health services; it narrows its scope to certain high-risk diagnoses. Similarly, routine medical check-ups and minor health issues are typically not covered under this type of insurance as it is geared towards more severe conditions requiring significant medical intervention.