What Is Major Medical?

Major medical insurance is a type of health care coverage that is designed to cover most types of medical expenses.

Function

• Major medical insurance tends to have a higher maximum payout and better individual benefits than standard medical insurance. Major medical also covers expenses accrued inside and outside the hospital.

Types

• Some major medical insurances are considered comprehensive. This means this policy covers all of your medical bills. Supplemental major medical insurance, however, only covers what your normal plan will not pay for.

Features

• Some major medical insurance pays for all of your expenses from the first dollar spent, while others won't provide coverage until a deductible is met. Deductibles will be different depending on the plan.

Benefits

• Many major medical plans also have what is known as a stop-loss limit, which is a maximum amount a holder can pay in deductibles and co-pays before the insurance company pays for everything. However, some plans have a maximum amount, which they will pay out.

Warning

• All major medical plans are different, so it is important you understand the fine print and everything that is covered before purchasing one.