Ace the 2025 Life & Health Insurance Exam – Insure Your Success Today!

A limited risk plan specifically provides benefits for defined diseases, which means it targets certain illnesses rather than offering broad coverage for all health issues. This type of plan is designed to cover conditions that the insurer has specifically chosen, often focusing on serious or high-cost diseases such as cancer, heart disease, or other significant conditions.

This limited scope of benefits allows the policy to potentially offer lower premiums compared to more comprehensive health insurance plans, which must accommodate a wider range of health issues. By centering on particular diseases, these plans can provide more substantial financial assistance when covered conditions arise, making them an attractive option for individuals looking for targeted protection.

The other choices represent broader coverage or different types of services that don't align with what a limited risk plan typically encompasses. For example, comprehensive coverage includes a wide array of health issues, whereas specific benefits and fixed amounts for any treatment provide less tailored assistance. Basic health screenings and preventive care do not fall under the limited risk category, as these are generally part of preventive health services rather than coverage for specific diseases.