In plain English
It tells you how much protection an insurance option gives and how broad that protection is. It also includes any cap on what the insurance will pay for the specified loss.
In context
Here, coverage level labels the choice for the amount and scope of insurance protection that applies to the included person or group, including any limit on payment.
- Situation
- Enrolling in policies and reading coverage, member, beneficiary, and effective-date labels
- What it communicates
- labels the option field for who is included under the selection
Meaning limits
The term alone does not tell you the exact losses covered or the exact amount that would be paid.
Examples
“The cheaper policy offered a lower coverage level, protecting fewer belongings and capping payment for a fire at a smaller amount.”
“Each child on the plan can have a different coverage level.”