Health Insurance Lifetime Maximum
The term Health Insurance Lifetime Maximum pertains to the maximum amount the insurance company will pay out during the lifetime of your policy. When you reach the maximum amount, the insurance company will not pay any more of your medical expenses.
What Are The Limits?
The usual amount the insurance company will pay is between 1 million and 5 million dollars. However, the maximum amount may vary from one policy to another. There are however some policies that contribute less than one million dollars the entire time you have coverage under that plan.
But don’t despair, some policies do have unlimited lifetime maximum but they’re not as common.
Why Are There Limits?
The reason insurance companies’ do this is so they can keep their overall liability as low as possible.
The insurance companies can keep the premium rates lower by keeping these limits lower. When insurance companies set the cost of the insurance policy, all the guidelines of the plan come into play, including the lifetime cap. Naturally, a policy with better benefits is going to be more expensive.
Therefore, an insurance policy that has a higher deductible and a lower lifetime cap is going to be less expensive than a plan with lower deductibles and an unlimited lifetime benefit.
Likewise, if the annual deductibles of two policies are the same, the one with the higher lifetime maximum will be more expensive.
Should You Be Concerned?
Right now, you and your family might be in good health and incurring medical bills of one to five million dollars seems astonishing.
Unfortunately, it’s easy to reach those high amounts in a very short time, especially with the high cost of treatments for conditions like cancer, chronic illness, organ transplants and heart surgery. These are extremely expensive.
If you want to be certain that you’ll be covered for all medical expenses for the life of your policy, go for one with a higher lifetime limit or one with no limit at all. To lower the cost of your policy, try one with a high annual deductible.
In closing consider this fact…..a cap of one million dollars in the 1970’s would need a cap of ten million dollars today to keep up with the rising inflation.
Last Modified April 7, 2010 @ 11:01 am