What is Major Medical insurance? Who should consider purchasing Major Medical insurance, and why?

Major Medical insurance is coverage that pushes medical protection beyond the limits of basic hospital coverage. It covers the high end medical expenses that we are least likely to incur, but fear the most. Major Medical coverage kicks in after a pre-determined deductible (excess) has been satisfied and then shares the cost of medical care with the insured. Traditionally the insurance company pays 80% of the costs with no built in limits, up to the plan maximum per occurrence. THI’s Major Medical pays 90% of the medical expenses.

Both THI and BUPA offer basic hospital plans with Major Medical built in. The deducible is satisfied by the basic hospital coverage. So, in effect, there is no deductible. Both BUPA and THI also offer stand-alone Major Medical policies. Their deductibles can be satisfied by the basic hospital coverage issued by any insurance company.
Major Medical insurance is good for anyone who doesn’t want to spend a lot of money for medical insurance, but would like to be protected against being wiped out financially by a costly medical problem. Also, anyone who has just a basic hospital plan should consider supplementing it with Major Medical insurance.
Why? Because Major Medical insurance provides high end protection for a relatively low cost.