What is a common characteristic of Major Medical policies?

Major Medical policies are designed to provide comprehensive coverage for a broad range of healthcare services, and one of their defining features is the inclusion of both deductibles and coinsurance. A deductible is the amount the insured must pay out-of-pocket before the insurance begins to cover costs, while coinsurance refers to the percentage of costs the insured is responsible for after the deductible has been met.

This structure is intended to share the financial responsibility of healthcare expenses between the insurer and the insured, which helps keep premiums more affordable while also encouraging responsible utilization of medical services. By requiring insured individuals to pay a portion of their medical expenses, these policies help mitigate the financial burden on the insurance company, allowing them to cover larger and more comprehensive claims.

In contrast, the other options do not accurately describe Major Medical policies. Fixed benefits per service are typically seen in limited benefit plans, while not requiring any cost-sharing contradicts the fundamental design of such policies. Furthermore, restricting coverage only to hospitalization does not apply to Major Medical, as these policies cover a wide array of medical services beyond just inpatient care.