Life & Health Insurance Exam (National Portion)Health InsuranceMedium
A client is considering purchasing a medical expense policy that offers comprehensive coverage for hospital expenses, surgical expenses, and physician services. This type of policy often includes a deductible and coinsurance, and may also have a catastrophic limit. Which type of policy is this?
- ABasic Hospital Expense Policy
- BMajor Medical Expense Insurance
- CBasic Surgical Expense Policy
- DHospital Indemnity Policy
Show answer & explanationAnswer & explanation
Correct answer: B. Major Medical Expense Insurance
Major Medical Expense Insurance is designed to provide broad coverage for a wide range of medical services, including hospital, surgical, and physician care. It typically features deductibles, coinsurance, and often an out-of-pocket maximum to limit the insured's liability for catastrophic costs.
Why the other options are wrong
- A. Basic Hospital Expense policies provide limited, specific coverage, often without deductibles/coinsurance.
- C. Basic Surgical Expense policies cover surgical fees only, not comprehensive care.
- D. Hospital Indemnity policies pay a fixed amount per day in the hospital, not actual expenses.
Major Medical Expense Insurance
A type of health insurance that provides broad coverage for a wide range of medical services, including hospital, surgical, and physician care, often featuring deductibles, coinsurance, and an out-of-pocket maximum.
- Comprehensive coverage for most medical expenses.
- Includes cost-sharing features like deductibles and coinsurance.
- Designed to protect against large medical bills.
Memory trick: Major Medical: 'Major' coverage for 'Major' expenses.