policy limit

Definition

Maximum lifetime benefit of a given insurance policy; often $1 million, although some policies have no limit.

Use policy limit in a sentence

You should try and set a good policy limit that you will not cross unless you absolutely have to in the future.

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Many homeowners who were the victims of hurricane Katrina discovered they were under insured when their damages exceeded their policy limits.

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He reviewed the documents and it stated that the policy limit was one million dollars. While he thought they would never hit that amount, it was nice knowing they were protected.

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policy instrument automatic reinstatement clause