13.4 Other Types of Medical Expense Coverage
Now that we've discussed the two principal kinds of medical expense insurance, there are two others we'll get into next.
- Hospital Fixed-Rate policies
- Limited Risk policies
Hospital Fixed-Rate Policies
A hospital indemnity or fixed rate policy offers daily, weekly, or monthly payments of a specified amount. The specified amount is based on the number of days an insured is hospitalized. Coverage can last a few months, years, or even a lifetime depending on specificities of the contractual agreement. This insurance has been more heavily promoted in the in recent years due to the skyrocketing health costs.
Limited Risk Policies
Limited Risk policies (also known as dread disease policies) are designed to protect people against specific illnesses. For example, cancer and heart disease can be very expensive illnesses to receive treatment for. Limited risk policies can be purchased for financial protection against these and similar illnesses. Some states prohibit the sale of these policies because people can be frightened into purchasing them.
