Is it worthwhile buying “dread disease” insurance, and other types of special health insurance?
You may receive solicitations in the mail for the following types of health insurance, or you may run across ads for them. They are to be avoided at all costs. Note: We realize that there are worthwhile policies out there that fall into the categories we talk about. But we bring your attention to these categories so that you will be wary of them, and will not buy without careful research. • Dread-Disease Insurance. This limited coverage insures against only one specific disease. Further, if you already have this disease (i.e., have been diagnosed) at the time you buy the policy, youre not covered. • Hospital Indemnity Insurance. “Indemnity” insurance means that the policy will pay (up to the policys limits) for actual charges by the care provider, as opposed to paying daily benefit amounts to the insured regardless of actual charges. The typical “hospital indemnity” policy will provide a very small amount of coverage per day, and is not worth it. • Medical-Surgical Insurance. This type
