Specified Disease Policy
What Does Specified Disease Policy Mean?
A specified disease policy is a supplemental insurance plan that provides coverage for a specific set of diseases or a single type of disease, as outlined in the health insurance policy. These diseases may include but are not limited to, serious conditions that often result in significant expenses during a person’s lifetime, such as end-stage renal failure, major organ transplants, strokes, diabetes, coronary artery or vascular diseases, and cancer.
Insuranceopedia Explains Specified Disease Policy
The primary benefit of a specified disease policy is that it provides targeted protection for specific diseases a policyholder may be at risk for, offering coverage at a nominal cost compared to insuring against all types of critical illnesses. Since it is not a standalone policy, it is typically available as a special endorsement or rider to an existing healthcare plan that lacks coverage for these conditions. Generally, policyholders can claim the specified disease benefit only under the following conditions: the insured person is hospitalized, a doctor has diagnosed the critical illness, and confirmatory laboratory tests have been completed.
