Which is true about Dread Disease policies?

Dread Disease policies are designed specifically to provide coverage for a limited number of serious illnesses, often referred to as "dread diseases." This can include conditions like cancer, heart disease, and other significant health issues that are typically associated with high treatment costs and emotional distress. The primary focus of these policies is to address the financial impact of specific, catastrophic diseases rather than offering a broad spectrum of medical coverage.

In contrast, other options suggest coverage that is either too broad or comprehensive, which is not the defining feature of Dread Disease policies. They do not cover a wide range of medical issues because their intent is to provide a targeted focus on the most critical health threats facing individuals. Additionally, they often do not provide comprehensive health coverage, which is a descriptor reserved for policies that include a variety of medical services and treatments. Lastly, the availability of Dread Disease policies can vary by state due to differing insurance regulations, so they may not be offered in all states, further reinforcing that the specific and narrowed nature of their coverage is what makes option B the accurate choice.