Catastrophic health insurance is a basic medical policy that provides financial coverage and security for severe medical conditions. A plan of this kind usually features benefits that cover expenses for medical specialists, an extended stay in the hospital, transportation between medical facilities, etc.

The Pros
Along with practical benefits provided by a catastrophic health guide insurance, the peace of mind it brings is also of major consideration. With such an insurance plan, you will no longer have to worry about your whole family's medical bills being left unpaid.

Also, many catastrophic health plans offer considerable benefit payments for a lifetime. The payments usually range between $1 million to $3 million. In the event that this cap is reached, the policy will be deemed void and the insurance company will no longer pay for medical expenses you incur.

Premium payments for catastrophic health coverage are generally lower than that of comprehensive coverage.

This type of plan also grants support for frequent travelers in the unfortunate event that they experience a health emergency while they are away from home.

The Cons
Although this type of plan typically costs less, it also offers a smaller number of benefits compared to comprehensive coverage. For example, catastrophic health plan does not afford coverage for expenses made on chronic health maintenance, except those that were acquired as a result of a catastrophic event.

Most catastrophic health plans also do not afford coverage for pregnancy, while others do not offer coverage for maternity for a whole year after the policy's effective date.

Further, catastrophic health plans are not offered to people who have pre-existing conditions. These conditions include AIDS, diabetes, emphysema, heart disease, multiple sclerosis, schizophrenia, etc.

Finally, although it extends benefits to frequent travelers, some catastrophic insurance plans will not be honored when used outside the United States.

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