Major medical insurance is a health insurance plan that covers most serious medical expenses up to a maximum limit, normally after a deductible and co-insurance provision. This is a moderately cheaper form of health insurance with an element of speculation to it. Major medical insurance plan is intended to provide financial protection for extraordinary medical bills beyond the limits of ones current medical insurance plan.

The term deductible refers to the amount the individual pays out of his purse for medical expenses before the insurance company pays the balance. For example, if the deductible is $6,000 and the hospital expense is $14,000, the insurer will pay only $8,000. The higher the deductible, the lower the premium. Young people in their twenties (who are confident of their health condition) and older men between fifty and sixty-five (who are still waiting for Medicare acceptance) are two groups who generally apply for major medical insurance.

Major medical insurance policy is available as an individual plan or as part of a group plan. An individual plan provides many of the valuable features seen in-group plans such as dental coverage, prescription drug cards, and family and child-only benefits. A self-employed person not covered by a group plan, an early retiree, a part-time employee, an unemployed person, or one actively seeking employment qualify for the major medical insurance policy.

Major medical insurance coverage is for protection against major hospital charges and not routine medical bills. The policy provides benefits for sickness or injury, regardless of whether the care is provided at a doctors office, clinic or hospital. Pre-existing medical conditions and cases, such as mental health and substance abuse, are normally barred from its coverage.

Rates of major medical insurance policy differ with the state one a person lives in and his age. In certain states in the United States, the saving on premiums could be two-thirds. Before making a decision, it is wise to look for professional guidance from insurance companies and/or agents, and compare major medical insurance quotes.