What is the coverage that is intended to afford protection against catastrophic losses defined as?

Major Medical insurance is designed to provide comprehensive coverage for significant medical expenses that may arise from serious illnesses or injuries. This type of insurance typically includes benefits for a wide range of healthcare services, including hospitalization, surgeries, specialist consultations, prescription medications, and sometimes preventive care.

The defining characteristic of Major Medical coverage is its focus on catastrophic losses, which refers to high-cost medical situations that could otherwise lead to substantial financial strain or bankruptcy for individuals. By having a Major Medical policy, insured individuals can better manage the financial impact of severe health events that require prolonged treatment or extensive medical resources.

Other types of insurance listed do not primarily focus on catastrophic losses. Accident Insurance usually provides benefits for injuries due to accidents but may not cover broader medical expenses. Hospital Indemnity insurance offers a fixed benefit for hospital stays rather than covering detailed medical costs associated with serious medical conditions. Liability Insurance protects against claims made for damages or injuries caused to others, which is entirely different from providing personal health coverage.