Insurance for big medical events is considered Catastrophic health insurance, also sometimes called major medical insurance. Generally, it’s for people who either don’t go to the doctor often or aren’t concerned about paying for minor health care expenses out-of-pocket as they come up.
You’re under age 30.
Suppose you're a person who rarely visits the doctor and can pay for routine medical bills, such as an ear infection or blood pressure check. You purchase a Catastrophic plan that has a deductible and 20% coinsurance amount. This means that after your deductible is met, you pay 20% of covered medical bills and the insurance company for your plan pays 80%.
Unfortunately, you have an accident that requires surgery, an extended hospital stay and rehabilitation. These services can cost thousands of dollars and are likely much more than your deductible. In this scenario, you would just pay your deductible and then 20% of the covered expenses until you reach your coinsurance out-of-pocket maximum.
It's a "just in case" type of coverage, so be sure to check the details of any catastrophic plan before you apply.
Critical illness insurance and accident insurance are two types of supplemental insurance that may come in handy when you face unexpected medical expenses.
Critical illness insurance can help you financially after a covered illness diagnosis.
Accident insurance helps pay for covered services resulting from accidental injuries.