What does a "stop-loss limit" signify in a health insurance policy?

The term "stop-loss limit" in a health insurance policy refers to the maximum amount that an insured individual has to pay out of pocket for covered healthcare services during a specific period, typically a calendar year, before the insurance company assumes full financial responsibility for covered expenses. Once the insured has reached this limit, the insurer pays 100% of the covered costs for the remainder of the policy year. This feature serves to protect policyholders from catastrophic expenses and unexpected financial burdens associated with significant medical costs.

In the context of the other choices, the limit on lifetime benefits pertains to the total amount that an insurer will pay over a policyholder's lifetime, which is different from stop-loss provisions. The number of claims that a policyholder can submit is generally not a standard feature associated with stop-loss limits; instead, policies focus on coverage amounts and exclusions. The age at which benefits cease is related to age limitations within a policy rather than a financial threshold related to out-of-pocket costs.