What term is used for coverage where payouts start immediately upon a claim without additional costs?

The term "first dollar coverage" refers to an insurance policy that provides benefits or payouts for a claim without requiring the insured to pay a deductible or any other out-of-pocket expenses first. This means that as soon as a claim is made, the insurance company starts paying benefits immediately, covering expenses without the insured having to contribute any amount upfront.

First dollar coverage is particularly valuable in scenarios where medical expenses can add up quickly, such as in health insurance or accident benefits, as it ensures that expenses are covered right from the first dollar spent. This aspect makes it distinct from other types of coverage, such as basic coverage, which might have higher deductibles or co-insurance requirements, or comprehensive and supplemental coverage, which could also incorporate terms that involve deductibles or additional costs.