Illinois Health Insurance Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Catastrophic health insurance is designed to protect individuals from very high costs associated with serious health issues or accidents. As such, it typically features low premiums, making it more affordable on a monthly basis compared to traditional health plans. However, to access benefits, the policyholder must first meet a high deductible. This means that the insurance only kicks in after the individual has incurred a certain level of medical expenses, aligning with the concept of being covered for worst-case scenarios. This structure allows people, particularly younger individuals or those in good health, to maintain insurance coverage while minimizing monthly costs.

The other options describe features that do not align with the primary characteristics of catastrophic health insurance. High premiums with low deductibles suggest a different type of insurance focused on regular healthcare needs. Similarly, coverage for routine medical expenses is not typical for catastrophic plans, which are meant to cover significant, unexpected costs rather than daily healthcare requirements. Lastly, comprehensive coverage for all health services relates to health insurance plans that provide broad and wide-ranging benefits, which is not a defining aspect of catastrophic insurance.