Aggregate and Specific Stop Loss Protection Insurance

Aggregate and Specific Stop Loss Protection Insurance includes two types of insurance policies that provide coverage to employers or self-insured entities for large and unexpected claims expenses related to their employee benefit plans.

This policy help mitigate the financial impact of large claims and provide stability to the employer's employee benefit plans.

Aggregate Stop Loss Protection Insurance

• Aggregate Stop Loss Protection Insurance, also known as Specific Advance Stop Loss Insurance, is designed to protect the employer or self-insured entity against the accumulation of claims costs beyond a certain threshold within a specified policy period, typically one year.  
• It provides coverage when the total claims for the entire employee group exceed the predetermined amount known as the "aggregate attachment point" or "specific deductible."
• This type of coverage is useful for protecting against high claim frequency.

Specific Stop Loss Protection Insurance

• Specific Stop Loss Protection Insurance, also known as Individual Advance Stop Loss Insurance, provides coverage for exceptionally large claims incurred by an individual employee or beneficiary.
• This type of policy is designed to protect the employer or self-insured entity from catastrophic claims that exceed a predetermined amount called the "specific deductible" or "individual attachment point."