Certified Application Counselor Practice Test 2026 - Free Practice Questions and Study Guide

Individuals are likely to opt for catastrophic coverage primarily when they seek lower premiums while still having coverage for severe health issues. Catastrophic plans are designed for those who are generally healthy but want to protect themselves against unexpected, high-cost medical events, such as serious accidents or illnesses. These plans typically have lower monthly premiums than other health insurance options, making them appealing for individuals who do not anticipate needing frequent medical care but still want security in case of a major health crisis.

This choice aligns with the core purpose of catastrophic plans, which is to provide a safety net without the higher cost associated with more comprehensive coverage. This allows individuals to balance their financial needs, ensuring they are protected from significant expenses while keeping their monthly budget manageable.