Question

Insurance that is meant to offset medical expenses resulting from a catastrophic illness is called____________?

1) Primary insurance
2) Major medical
3) Whole life policy
4) Comprehensive

Answer 1

Major Medical insurance is designed to protect against the large expenses incurred due to catastrophic illnesses, by providing financial support through the payment of premiums into a communal pool. The correct option is 2.

Step-by-step explanation:

Insurance that is meant to offset medical expenses resulting from a catastrophic illness is called Major Medical insurance. Insurance is a crucial method for both households and firms to protect against significant financial losses due to unforeseen events.

By paying regular premiums, insured members contribute to a pool of money which is then used to compensate those who suffer specified losses, as determined by the insurance policy terms.

Major medical insurance is specifically designed to protect against the high costs associated with severe or prolonged illnesses, ensuring financial support during such trying times. The correct option is 2.