When do benefits begin under catastrophic insurance?

Catastrophic insurance is designed to provide coverage for extreme medical expenses resulting from serious injuries or illnesses, particularly in the context of sports injuries. The benefits of this type of insurance typically activate once the medical expenses surpass a specific threshold, which is set to shield the insured from incurring excess financial burdens associated with severe injuries.

The threshold for triggering benefits is commonly established at $25,000 in many policies, meaning that only after reaching this amount will the catastrophic insurance start to cover additional expenses. This ensures that individuals only face significant out-of-pocket expenses for more severe claims before they receive support from their insurance.

The other amounts mentioned in the response options do not align with the standard initiation point for benefits under catastrophic insurance, as these lower amounts would not typically trigger coverage under the policies, thus emphasizing that the correct understanding of when benefits begin is after expenses exceed $25,000.