Explore commonly used personal finance terms.
An aggregate limit is the maximum amount an insurance policy will pay out for covered losses within a specified period, usually annually. This cap applies across all claims during the period, and once the aggregate limit is reached, no further payments are made until the next period. Aggregate limits are common in liability and health insurance policies, helping insurers control their risk exposure while giving policyholders a clear understanding of coverage boundaries, particularly for high-frequency or high-severity risks.
