Tennessee Insurance Practice Exam 2025 – All-in-One Resource for Exam Success!

Major Medical policies are characterized by their higher coverage limits, which is a core feature that distinguishes them from Basic policies. These higher limits mean that Major Medical policies provide a more comprehensive range of benefits for various medical expenses, including hospitalization, surgeries, and extensive outpatient care. This type of coverage is designed to protect against significant health costs, offering more financial security to policyholders in case of severe illness or injury.

In contrast, Basic policies usually provide limited coverage, focusing on specific medical expenses and often having lower maximum payout limits. The design of Basic policies might also involve more limited types of services covered, which can leave room for significant out-of-pocket expenses for additional healthcare needs. Therefore, the distinction lies in the breadth and cap of the coverage provided, with Major Medical policies offering a more robust safety net for those facing substantial healthcare costs.