Which term correctly labels the upper limit on total lifetime benefits?

• A. Cash surrender value
• B. Annual premium
• C. Maximum benefits
• D. Death benefit

Answer: (C)

The upper limit on total lifetime benefits is the maximum benefits. In many health, accident, or disability policies, there is a cap on how much the insurer will pay over the insured’s lifetime for covered benefits. That cap is called the lifetime maximum, or simply maximum benefits. It prevents indefinite payments and sets a hard ceiling on what the policy will cover in total.

Cash surrender value is the cash you could receive if you terminate a whole life policy, not a limit on benefits. Annual premium is the yearly cost to keep the policy in force, not a payout limit. Death benefit is the amount paid when the insured dies, which is separate from the lifetime total of benefits the policy will pay during the insured’s lifetime.