Catastrophic Insurance

Catastrophic Insurance is a type of fee for service (can be HMO or PPO too!) that covers only major expenses. Often times this insurance has a multi-thousand dollar deductible that must be met before any payment is made from the insurance company. This insurance is MUCH better than no insurance, but you must be prepared to pay entirely out of pocket for doctor visits, routine checkups, etc.

Sometimes this type of insurance is paired with a Health Savings Account. Click the link to the left for Health Savings Accounts to read more about them.