What Does Lifetime Maximum Benefit Mean For Cheap Health Insurance?

By Robert Fredricks Posted in Health Insurance News

Writing a health insurance policy is a laborious and complicated process. So many factors need to be considered when determining what should be covered what won’t be covered and how much the insurance company will pay before they cut the insured off. This limit is called a lifetime maximum benefit. It simply mean the maximum amount of money an insurance company will pay for health care expenses on one person.

When you first read over your policy you may notice the lifetime maximum benefit listed somewhere on the document. It is usually anywhere from $500,000 to $1.5 million. This amount is the most your insurance company will cover you for your medical expenses. It may seem like a lot of money, a sum that you would never spend but you would be surprised at how one illness will cost that much to treat.

Case Study

Seventeen-year-old Kashia was a vibrant healthy senior in high school when she was diagnosed with leukemia. Between doctor’s visits, hospital stays, medications, chemotherapy, blood transfusions, and bone marrow transplants she reached her maximum benefit in a little over three years. but even three years after the onset, and after all of the treatment, Kashia was far from cured and still required extensive medical treatment.

Her parents had been in talks with the insurance company but once she reached her lifetime maximum there was little her parents could do. After this point the insurance company stopped covering her medical expenses and her parents had to take out loans to cover the difference. It is very easy for one debilitating illness to wipe out you health insurance.

Supplemental Insurance

Supplemental insurance is one way to help cover additional costs or share the cost of traditional health insurance. Since no one can really predict when they will get seriously ill or predict any catastrophic life events, like a crippling injury, supplemental insurance can provide an extra measure of protection.

Related posts:

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  2. What Does Major Medical Insurance On A Health Insurance Policy Entail?
  3. What Is A Health Reimbursement Arrangement For Health Insurance?
  4. What Is A Medigap Health Insurance Policy And How Does It Work?
  5. What Kind Of Health Insurance Do Parents Need?

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