Which of the following is typically covered by a dread disease policy?

A dread disease policy is specifically designed to provide financial protection against serious illnesses that generally require extensive medical treatment and can lead to considerable expenses. This type of insurance typically covers critical and catastrophic conditions such as cancer, heart attack, stroke, and other severe health issues that can incur significant costs due to hospital stays, surgeries, and ongoing care.

The key aspect that makes option C the correct choice is that it recognizes the nature of the illnesses that these policies are intended to cover. Dread disease policies are built to address conditions that are not only severe but can also lead to long-term financial impact on the insured and their family.

Other options do not align with the primary purpose of dread disease coverage. Common colds and frequently occurring illnesses do not typically lead to significant costs that would justify coverage under such a policy. Dread disease insurance is not concerned with minor or common health issues like these. Moreover, preventative health screenings are intended to catch diseases early or help maintain health, rather than provide financial protection in the face of an already established critical health condition, making them outside the scope of dread disease coverage. Thus, option C is the most appropriate representation of what these policies are designed to address.