Specified Disease Insurance Law and Legal Definition

Specified disease insurance is a kind of insurance that provides benefit for only a single disease, such as cancer, or for a group of diseases. The benefit of such coverage depends on the chance of getting a specific disease or diseases covered by insurance policy. An insurer under this policy will get the benefits only when s/he is diagnosed with the specific illness or condition named in the policy. Sometimes coverage benefits will be provided only if an insured person is admitted to hospital for a condition or on confirmation of a physician’s diagnosis with pathology report.

Specified disease insurance provides supplemental coverage on top of an existing health care policy. Hence they are often sold as a rider or special amendment to an existing insurance plan, instead of an independent policy. Specified disease insurance are sometimes called dread disease insurance.

Specified disease insurance is offered to cancer, critical illness, first diagnosis cancer, fixed indemnity, medicare supplement, preventive care, specified disease, specified health event, dental and vision problems.