Catastrophic insurance protects against severe, high-cost medical emergencies or disasters

Catastrophic insurance protects against severe, high-cost medical emergencies or disasters, acting as a safety net for major events like serious illness, accidents, or natural disasters, often with low premiums but high deductibles that trigger coverage for extensive expenses like emergency care, hospital stays, and high prescription drug costs. It works with primary insurance, kicking in after a set amount is spent (the deductible), covering essential health benefits and preventing financial ruin from unexpected huge bills. 

Key Features & How It Works

• High Deductible: You pay a significant amount out-of-pocket before the catastrophic coverage begins.
• Low Premiums: Monthly costs are generally lower than comprehensive plans.
• Covers Major Expenses: Protects against severe illness, accidents, or even natural disasters (like flood/earthquake insurance).
• Essential Benefits: In the U.S., it covers the 10 essential health benefits, including preventive care, and often provides free primary care visits before the deductible.
• Works with Other Plans: Can be an add-on (rider) to existing health insurance or employer benefits, or a stand-alone plan. 

Examples of What’s Covered (Varies by Plan)

• Emergency ambulance & hospital stays
• Expensive or long-term prescription drugs
• Private nursing or home care
• Medical equipment and prosthetics
• Accidental dental work
• Emergency medical travel 

Who Needs It?

• Young Adults: People under 30 or those with hardship exemptions in the U.S..
• Employers: To protect against huge claims from employees.
• Individuals: Those who want protection from financially devastating medical events and can afford the high deductible.