What type of insurance is primarily designed to cover large medical expenses?

Major medical insurance is specifically designed to cover large medical expenses that arise from significant illness or injury. This type of insurance typically provides a comprehensive range of benefits, including coverage for hospital stays, surgeries, and other high-cost medical services. It often features a higher deductible and co-insurance arrangement, but it offers robust protection against major healthcare costs, making it essential for individuals who want to safeguard themselves against financial burdens arising from unforeseen medical issues.

Health maintenance organizations (HMOs) focus more on preventive care and a network of providers rather than exclusively covering large medical expenses. While critical illness insurance provides a payout if a specified serious illness occurs, it does not cover ongoing medical expenses related to treatment. Catastrophic insurance offers limited coverage for worst-case scenarios, usually with high deductibles, but it may not extend to the breadth of expenses covered by major medical insurance. Thus, major medical insurance stands out as the most appropriate type for handling extensive medical costs.