Life & Health Insurance Exam (National Portion)Health InsuranceEasy
A client is considering purchasing a medical expense policy that offers comprehensive coverage for hospital stays, surgical procedures, and physician services, with high maximum limits. This type of policy is generally known as a:
- ALimited Benefit plan
- BMajor Medical Expense plan
- CHospital Indemnity plan
- DBasic Medical Expense plan
Show answer & explanationAnswer & explanation
Correct answer: B. Major Medical Expense plan
Major Medical Expense plans are designed to provide broad coverage for catastrophic illnesses or injuries, featuring high maximum limits and covering a wide range of medical services, including hospital, surgical, and physician care.
Why the other options are wrong
- A. Limited Benefit plans cover only specific diseases or services, not comprehensive care.
- C. Hospital Indemnity plans pay a fixed daily benefit for hospital stays, not actual medical expenses.
- D. Basic Medical Expense plans typically have lower limits and cover specific services, not comprehensive.
Major Medical Expense Insurance
A broad type of health insurance that provides comprehensive coverage for a wide range of medical services, including hospital, surgical, and physician expenses, typically with high maximum limits.
- Designed for catastrophic illness or injury.
- Features deductibles, coinsurance, and out-of-pocket maximums.
- Offers high maximum benefit limits.
- Covers both inpatient and outpatient services.
Memory trick: Basic is small, Major is big, Limited is specific.