Final answer:
Dread disease insurance provides coverage for specific types of serious illnesses designated in the policy, such as cancer or stroke, and is not a replacement for regular health insurance.
Step-by-step explanation:
Dread disease insurance provides benefits for specific types of illnesses such as cancer, stroke, or other serious ailments designated in the policy. Unlike comprehensive health insurance that pays for a wide range of medical care, dread disease insurance is a supplemental policy that focuses on particular, severe conditions.
This type of coverage can be useful for covering expenses that a regular health insurance policy might not fully cover, such as out-of-pocket costs or non-medical expenses related to the treatment of the disease. It's important to note that dread disease insurance typically does not cover minor illnesses, mental health conditions, or injuries from accidents.