Which statement about major medical insurance is true?

Major medical insurance is characterized by its coverage of a wide array of healthcare services, including but not limited to hospitalization, surgery, preventive care, and specialist consultations. One of its defining features is the higher policy limits it typically offers. This means that in the event of a major health issue, the insurance will cover a larger portion of the costs, making it crucial for individuals who might face significant medical expenses.

Higher policy limits are designed to protect individuals from catastrophic healthcare costs, which can arise from serious illnesses or major injuries. This type of coverage is essential in ensuring that individuals or families do not face financial ruin due to unexpected medical emergencies. Additionally, major medical policies often include extensive benefits and a broader network of healthcare providers, which is a distinguishing factor from basic health insurance plans that may have more limited benefits and lower policy limits.

In contrast, major medical insurance is generally associated with higher premiums and deductibles, which sets it apart from basic health insurance that could have lower costs but also limited coverage at the same time. Therefore, when considering major medical insurance, the aspect of higher policy limits is significant because it enhances coverage and financial protection during serious health events.