Health Insurance Mastery Practice Exam

What type of policy typically covers both hospital stays and outpatient medical treatments?

1. Basic health insurance policy

2. Comprehensive medical expense policy

3. Critical illness policy

4. Long-term care insurance

The correct answer is: Comprehensive medical expense policy

A comprehensive medical expense policy is designed to provide broad coverage that includes both inpatient hospital stays and outpatient medical treatments. This type of policy typically encompasses various healthcare services, such as doctor visits, surgical procedures, preventive care, and emergency services, ensuring that policyholders have access to a wide range of medical care. In contrast, a basic health insurance policy generally offers limited coverage, focusing primarily on hospital stays without extensive benefits for outpatient services. A critical illness policy provides financial support specifically for certain severe illnesses, but it does not cover routine medical care. Long-term care insurance is intended for individuals who need assistance with daily activities over an extended period and does not typically cover hospital or outpatient treatments. Thus, the comprehensive medical expense policy best fits the description of covering both types of medical needs.