What is Policy Maximum? How does Policy Maximum affect Visitor Insurance? 

Policy maximum is the maximum amount your insurance company will cover for you as per your purchased plan. The policy maximum can vary from $50,000 to $8 million, depending on the visitor insurance plan you opt for. It is essential for a policyholder to choose a policy maximum while buying an insurance plan. The policy maximum is one of the factors that will directly affect the premium,  the amount charged for you to be covered by the insurance company to buy the plan. 

The general rule is that the higher the policy maximum you choose, the higher the premium will be. Generally, if you opt for a higher deductible, your premium will go down. You can choose from various policy maximum options; however, the higher policy maximum you opt for, you will be better covered for new illnesses, accidents, and injuries. 

Along with the policy maximum, insurance plans have two more parts- co-insurance and deductible. Co-insurance is the amount you pay along with the insurance company after the deductible is met. It is a fixed percentage that you share with the insurance company up to a certain limit, after which the policy will pay 100% up to your chosen policy maximum. For instance, the plan you purchased says it will cover 90% of the first $5,000 in bills, after which the plan will pay 100% up to the chosen policy maximum.  

There are two different policy maximum types. 

• Per life of plan – The policy maximum applies to the whole policy period  
• Per Injury and sickness – The policy maximum applies to each new injury or sickness 

How to choose a policy maximum? 

Some factors determine how much policy maximum can be good for a policyholder. 

• Traveler’s age– The traveler’s age plays a vital role in selecting a policy maximum. Younger adults get several options, but elderly adults (70 & above) do not have numerous policy ranges. Insurance plans usually for the elderly age group offer a $50,000 and $100,000 policy maximum. Visitor insurance for seniors over 80 often has a low policy maximum and can be up to $50,000.  
• The travel plan– If your vacation involves walking, sightseeing, city, and cultural tours, a visitor insurance plan with a higher policy maximum can work. But if your travel plan includes many outdoor, extreme activities and hazardous sports, you need additional coverage. You become prone to injuries and wounds that may need immediate medical needs. These scenarios may be worse than getting sick, and you may have to rush to an emergency room.  
• Budget– Higher policy maximum means a higher premium. Depending on how much you are willing to pay becomes a vital factor for you in choosing policy maximum. You can opt for a low policy maximum if you want to pay cheaper premiums. 
• Trip duration- Trip duration should not affect the policy maximum choice as a sudden injury or illness can happen at any time. The longer the trip, the higher the chances of falling sick and using the policy because the probability of needing medical attention can increase. Chances are you are more likely to incur a higher amount of expenses in 6 months than you are in 6 days. Likewise, it is unlikely that trips lasting a week or two will need a policy maximum of $8 million. 

There are other factors as well that determine how much policy maximum you should opt for. However, these criteria should help you make a more informed decision. Policy maximum is one of the factors that affect the cost of visitor insurance- a higher policy maximum means less liability for you, and a lower policy maximum means less protection and higher risk. 

How much policy maximum is good for you? 

It is hard to say how much policy maximum one should opt for as the cost of treatment would vary per the illness or injury someone would have. It is necessary to get an adequate policy maximum to cover the medical bills during a catastrophic event that can occur while you are traveling. 

Depending on where you are heading and the activities you include, you may need a higher policy maximum. For example, visiting the US may require a higher policy maximum than traveling to Thailand or Vietnam. Or, vacationing a week in Canada needs more policy maximum than vacationing a month in India. When the scenarios change, the plan changes, too. 

If you are unsure which policy maximum to choose, we are here to help you! Visitor Guard® has experts who can suggest the right plan per your travel needs. For any help, contact us at the number given on the site.