Major medical policies typically contain which of the following features to protect insureds?

The stop-loss feature is an important characteristic of major medical policies as it provides a level of financial protection for insured individuals. Essentially, this feature sets a limit on the total amount of out-of-pocket expenses that an insured must pay for covered medical services within a specific period, usually a policy year. Once the insured reaches this threshold, the insurance company covers 100% of any additional costs for that year, reducing the risk of catastrophic financial burden due to high medical expenses.

In the context of major medical insurance, this feature is particularly valuable because it can prevent individuals from facing overwhelming costs in the event of serious illness or injury. It is designed to offer peace of mind and financial predictability, which is a significant reason why many individuals opt for major medical coverage.

Other features, such as a lifetime maximum limit, deductible options, and co-insurance provisions, while also important components of health insurance policies, do not provide the same level of ongoing financial protection that the stop-loss feature does. For instance, a lifetime maximum limit caps the total benefits paid, while deductibles require upfront costs before coverage kicks in; co-insurance requires sharing costs, which can still leave insured individuals with significant financial liability. The stop-loss feature stands out by ensuring that once a