Benefit Cap (Insurance & Financial Protection) - Definition, Examples, Advice | Bolder Money

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Definition

A limit on the amount the insurer will pay for a covered service. It protects the insurer while setting clear expectations for your coverage.

What to consider

Understand the total coverage limit.
Plan for expenses that might exceed this limit.
Review policy details for any exceptions.

Real world scenarios

A property insurance policy sets an aggregate limit, capping the total payout over the policy period.
An auto insurer specifies an aggregate limit that restricts total claim payments for a year.
A health plan outlines an aggregate limit for all claims during the policy term.

Related terms

Insurance & Financial Protection

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