Stop Loss Insurance - The Definitions


Stop Loss insurance allows an employer to pay a certain amount of health costs out of pocket and allows for the insurance company to cover the costs over your prescibed amount. This option was originally invented by large corporations who found it made more sense to self insure their companies, and pay a small insurance premium for catastrophic events. This is a great alternative option to the traditional insurance plans.

 Check out the below illustrations that further describe how the plans work.

Above: Money sits in reserve until it is needed for a claim. If at the end of the year there hasn't been a claim higher than the stop loss, money is returned to the plan company/sponsor 


 

Above: The Company has placed a stop loss of $1000. Three employees have spent more than the stop loss, which amount the insurance company would kick in to pay the claims. The remaining three employees who have not spent up to the stop loss. The difference between their claims and stop loss be returned in cash.

Teacher

“They took the time to teach and mentor me.”

- Ossa Zebian

Work

“I felt like I was in control and was making informed decisions about my future....”

- Glenn Tunstall

Trust

“In my first meeting with Infinite FInancial I felt their honesty, integrity, and...”

- Joan Palmer

Ask an advisor:

Your question submited.

One of our advisors will reply as soon as possible. We treat you like family and we don't spam family.

Dont Forget These Two Simple Steps When Estate Planning

The pure purpose of Estate Planning is to make an efficient transfer of wealth. Efficiency of Estate Planning is measured in two parts:1) Tax: It is important to plan your estate in a way that will transfer wealth in a tax-efficient manner—set...

Read more
How to Save the Family Cottage

We have all heard the old saying, “Two things are guaranteed in life: 1. Death 2. Taxes.”We are at an interesting time right now where prices of assets over the last 50+ years have seen a tremendous growth spurt. I always find it interesting talk...

Read more
Infinite Newsletter

Subscribe to our email newsletter for useful tips and valuable resources!

You are subscribed.
Email already exist!