What Does Catastrophic Health Insurance Mean?

Catastrophic illness insurance is a type of insurance that financially protects the policyholder against specified severe illnesses within a definite period of time. The insurer typically pays the policyholder in lump sum, either full or partial, in the event that the policyholder is diagnosed with any of the specific illnesses covered under the insurance policy. Once paid, the policyholder has freedom to use the money for whatever purpose.