Certified Financial Consultant (CFC) Practice Exam

What provides a method for individuals to receive benefits without deductibles?

1. Co-payment plans

2. Coinsurance plans

3. First Dollar coverage

4. High deductible health plans

The correct answer is: First Dollar coverage

First dollar coverage is designed to provide benefits to individuals immediately upon the onset of a claim, without the requirement of meeting a deductible first. This type of coverage ensures that any necessary medical expenses are covered right away, which is particularly beneficial for policyholders who may not have the means to pay out-of-pocket expenses upfront. This format provides a sense of financial security and can improve access to necessary care since individuals do not face barriers in the form of deductibles. In contrast, co-payment plans and coinsurance plans typically involve some form of cost-sharing, meaning that individuals are responsible for a portion of the costs after satisfying certain requirements, like deductibles. High deductible health plans, by definition, have higher deductibles that must be met before any benefits kick in, which would not align with the features of first dollar coverage. Thus, first dollar coverage distinctly stands out as a method enabling individuals to access benefits without the hindrance of deductibles.