The goal of any health care plan is to protect clients in the event of a catastrophic health event, and many are effective in helping with even minor slips and falls along the way. Health care plans are many and varied, offering coverage levels of every type, and come with restrictions and deductibles that can be anywhere from simple and straightforward to a tangled web of bureaucratic madness. At the end of the day, however, what is important to know is that your health plan covers you should you ever need to make any large health insurance claims or suddenly find yourself in a position where you are going to have to rely heavily on your coverage. As it turns out, however, many plans have far lower coverage maximums than clients are aware of.

One way to help mitigate the effects of a maxed out health insurance policy on a pocket book is stop loss insurance. This type of insurance operates in the same way as typical health insurance, but comes with a high deductible. It is not meant to be used until another plan has been maxed out, and often the use of the other plan can count toward a portion of the stop loss deductible. This kind of insurance can be useful in three different situations.

The first is for someone who is self-employed and has either no health coverage or very limited coverage in case of emergencies. A visit to the doctor or dentist may be rare, but when the time comes and treatment is needed immediately, stop-loss coverage can help to offset a potentially crippling cost. Second, individuals who are covered through their group employee insurance can also benefit from stop loss. In many cases, employer health insurance claims are subject to stringent and often low maximums, and one large health issue or a series of small ones can leave an employee with no benefits left to use. Last but not least, employers who provide group coverage may also find stop loss insurance to be extremely useful. It can help to protect them from sudden large claims from families that have undergone a tragic event, or find themselves in need of a recurring treatment or drug. This is especially useful for businesses that are smaller and manage their own health care plans.

Stop loss insurance comes with a high deductible and is not something that should be used on a regular basis. It is meant to help supplement existing health care insurance, or to be used as a “last resort” option when something far out of the ordinary happens. Stop loss can help patients limit their physical and financial hardships by adding an extra layer of health protection.