What does the term "lifetime maximum" refer to in health insurance?

The term "lifetime maximum" specifically refers to the maximum amount a health insurance policy will pay for a specific covered individual over their lifetime. This is an important concept in health insurance because it establishes an upper limit on the total benefits that an insurer will provide for all medical costs incurred by an individual. Once this maximum has been reached, the insurance company will no longer provide coverage for additional expenses, leaving the patient responsible for any further medical costs.

This concept can have significant implications for individuals with chronic conditions or those who require ongoing and expensive medical treatments, as exceeding the lifetime maximum can lead to substantial out-of-pocket expenses for the insured. Understanding this aspect of health insurance can help individuals make informed decisions when selecting a policy that best meets their health needs.