Florida Insurance Licensing Practice Exam

The key feature of catastrophic health insurance is that it provides limited coverage with high deductibles for serious conditions. This type of insurance is designed to protect individuals from significant medical expenses arising from severe health issues or emergencies, while typically requiring the insured to pay for most routine medical expenses out-of-pocket until the deductible is met.

Catastrophic plans are generally more affordable in terms of monthly premiums but come with the trade-off of higher deductibles, which means that they are primarily intended for those who do not expect to have frequent medical needs. This makes it a practical option for young, healthy individuals or those who are looking to ensure they are covered in case of major health events without needing to pay for comprehensive coverage.

The other options suggest features that do not align with the essence of catastrophic health insurance, such as providing full coverage for routine care or covering all medical expenses without any waiting period, which do not accurately reflect the intended purpose or structure of these plans.