What type of insurance is designed to cover catastrophic events?

Catastrophic health insurance plans are specifically designed to provide coverage for significant, unexpected events that could lead to substantial medical expenses. These plans typically have low monthly premiums but high deductibles, meaning they are intended to protect individuals against the financial burden of serious health emergencies and major medical costs.

Unlike comprehensive health insurance plans, which offer broader coverage including routine and preventive care, catastrophic plans focus primarily on protecting against severe crises. Preventive care plans, on the other hand, emphasize maintaining health and preventing illnesses without substantial coverage for emergencies. Short-term health insurance plans are generally temporary solutions and may not offer robust protection for catastrophic events.

Thus, catastrophic health insurance plans fulfill the need for coverage specifically tailored to address severe medical situations, making them the correct choice in this context.