When buy a PPO or an Indemnity (Free choice of provider) plan it is important to understand what an annual maximum limitation is and how it effects you. Let’s say you go to your dentist for your cleaning and check up. After some X-rays they discover you have a tooth with bad dental decay and you will need a crown.

If you go to an expensive dentist in order to get your crown you may run into what is called an annual maximum limitation.  To understand what this is,  a maximum limitation is the cap on what your dental insurance plan is willing to pay out for covered services provided each year per person. A $1000 dollar annual maximum for an individual plan is common but they can range between $1000 – 2000. With that in mind, before buying this type of dental insurance plan you should think of both your current and possible future needs in order to not exceed your annual maximum limitation.