Specified Disease Policy

Updated: 09 June 2023

What Does Specified Disease Policy Mean?

A specified disease policy is supplemental coverage that insures a policyholder against a specific set of diseases or a single type of disease as written in the health insurance policy. These diseases can be any or all of the following serious conditions that lead to major expenses in any person’s lifetime: end stage renal failure, major organ transplant, stroke, diabetes, coronary artery or vascular disease, and cancer.

Insuranceopedia Explains Specified Disease Policy

The benefit of a specified disease policy is that it offers policyholders protection for specific diseases one may be at risk for, thereby costing a nominal value compared to insuring oneself against all types of dreaded diseases. As it is not an independent policy, it is available as a special endorsement or rider to a current healthcare plan that does not provide protection for these dreaded diseases. Commonly, policyholders can only claim specified disease benefit under the following conditions: the insured person is admitted to the hospital, a doctor’s diagnosis of the dreaded disease, and confirmatory tests from the lab are completed.

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