What Is a Lifetime Maximum in Health Insurance?
- Lifetime maximum amounts vary from plan to plan, with most plan maximums falling between $1 million and $5 million. Some plans have no lifetime maximum.
- Unlike deductibles and coinsurance amounts, lifetime maximums don't reset every year. The lifetime maximum takes into consideration every medical bill your insurance has paid for you.
- While a plan maximum in the millions of dollars sounds high, a person who has a severe injury or illness can easily rack up medical bills in the hundreds of thousands or more. It's important to find a health insurance plan with an adequate lifetime maximum for your needs. Most consumers choose plans with lifetime maximums of at least $2 million, if available.
- If a health insurance subscriber meets the plan's lifetime maximum, he or she might not be eligible for further coverage under the plan. Check the plan's documents or contact your insurance company to find out what happens if the benefits paid out reach the lifetime maximum.
- In general, the richer the benefits a plan has, the more expensive it is. To offset the cost of choosing a plan with a high lifetime maximum or no lifetime maximum, consider buying a policy with a higher deductible.
