Hassle-Free Health Coverage: Limited and Special Risks

Limited risk policies generally include accident-only contracts or contracts that provide coverage for specific situations. For example, a travel accident policy purchased at a local airport usually covers an individual for travel on the airplane on that particular day.

In contrast, a special risk policy is one which covers an unusual type of risk. For example, a professional football player insures his legs so that if he receives a career-ending injury, the policy would indemnify him for the loss (usually loss of income and earning potential).

This type of risk cannot be covered under a regular accident policy.

Specified or dread disease policies provide benefits only if you contract the specific disease or group of diseases named in the policy.

Because benefits are limited in amount, these policies are not a substitute for broad medical coverage. And specified disease policies are not available in every state.