Coverage Limit

A coverage limit refers to the maximum amount an insurance policy will pay for a particular claim or expense. It acts as a cap on the financial protection you receive. For example, if you have a health insurance plan with a coverage limit of $100,000, the insurer will only cover medical costs up to that amount. Any expenses beyond that limit would be your responsibility to pay. Understanding coverage limits is essential to ensure that you have adequate protection against potential losses or costs you may face.