What type of insurance is primarily designed to cover catastrophic medical expenses for unexpected issues?

Major medical insurance is specifically structured to provide coverage for significant healthcare expenses that arise from severe and unexpected medical conditions. This type of insurance typically includes benefits for hospitalization, surgeries, and specialized treatments, ensuring that policyholders have financial assistance during significant health crises.

The key aspect of major medical insurance is its focus on high-cost medical events, which distinguishes it from other types of insurance. Critical illness insurance, for instance, offers a lump-sum payment for the diagnosis of a specified disease but does not cover ongoing medical expenses. Disability insurance, on the other hand, provides income replacement in the event that an individual becomes unable to work due to injury or illness, rather than covering medical expenses directly. Long-term care insurance addresses the costs associated with extended care needs, typically related to aging or chronic illness, but does not cover acute medical situations. Thus, major medical insurance is the most appropriate choice for covering catastrophic medical expenses.