PSI Ohio Insurance Practice Exam

Which type of insurance provides the broadest coverage and higher policy maximums than basic policies?

1. Major medical insurance

2. Catastrophic health insurance

3. Short-term health insurance

4. Basic health insurance

The correct answer is: Major medical insurance

The choice of major medical insurance is accurate because this type of insurance is specifically designed to cover a wide range of medical expenses, offering extensive benefits compared to basic health insurance policies. Major medical insurance typically includes coverage for hospitalization, outpatient services, diagnostic tests, and preventive care, providing a higher level of protection and financial support when faced with significant healthcare costs. Additionally, major medical insurance usually includes higher policy maximums or limits, meaning that it can cover larger claims and, in some cases, might even cover the entirety of significant medical expenses after the deductible is met. This comprehensive nature distinguishes it from other options, which either have more limited coverage or are intended for specific types of situations, such as short-term health insurance, which is generally less comprehensive and more temporary with limited benefits. In contrast, catastrophic health insurance is designed primarily for worst-case scenarios and has a high deductible, focusing on emergency situations rather than providing broad coverage for a range of medical needs. Short-term health insurance offers limited duration and can exclude coverage for certain conditions or services, while basic health insurance typically has lower maximum payout limits and fewer covered services.