Which statement best describes a Cancer plan in the context of health insurance?

• A. A long-term care policy
• B. A limited accident and health plan
• C. A comprehensive disability policy
• D. A major medical plan

Answer: (B)

A cancer plan is a limited benefit health coverage focused on one specific condition. It’s designed to pay fixed benefits for a cancer diagnosis and related treatments rather than providing broad, comprehensive medical protection. That makes it a limited accident and health plan: it covers only cancer-related costs and doesn’t replace broader health insurance or cover a wide range of medical services.

This isn’t a long-term care policy, which would focus on custodial or extended care needs; it isn’t a comprehensive disability policy, which would replace income for disability; and it isn’t a major medical plan, which would provide broad coverage for a wide array of medical services. The hallmark of a cancer plan is its focused, limited coverage for cancer-related expenses, hence the best description.