Which type of insurance is designed to provide coverage for catastrophic health expenses?

Comprehensive health insurance is designed to provide extensive coverage for a wide range of medical expenses, including catastrophic health events. This type of insurance typically encompasses hospital stays, surgeries, outpatient care, emergency services, and preventive care, thus ensuring that policyholders are financially protected against significant healthcare costs. Comprehensive plans are crucial in situations where medical expenses can accumulate rapidly, especially in the case of serious illnesses or severe injuries.

In contrast, term health insurance is usually more limited in scope and may not cover any specific catastrophic events. Critical illness insurance specifically pays a lump sum upon the diagnosis of a covered critical illness but does not necessarily cover all medical expenses incurred. Short-term disability insurance provides income replacement for individuals unable to work due to illness or injury, rather than covering health care costs directly. Thus, comprehensive health insurance remains the most suitable option for addressing the financial impact of catastrophic health expenses.