Which term refers to the maximum amount that an insurance policy will cover out of the insured's total expenses?

The correct term that refers to the maximum amount that an insurance policy will cover out of the insured's total expenses is the "out of pocket limit." This limit is a critical component of an insurance plan as it defines the maximum amount an insured individual must pay for covered healthcare services in a given period, typically a year. Once the out-of-pocket limit is reached, the insurance provider will cover 100% of the remaining costs for covered services, relieving the policyholder from any additional financial responsibility for those services.

Other terms such as "policy cap" and "total coverage limit" may suggest different meanings in the context of insurance. A policy cap usually refers to a limit on a specific benefit, like how much can be claimed for a particular type of service or treatment, rather than an overall out-of-pocket expense threshold. "Premium cap" is not commonly used in this context; it would imply a limit on the amount of premium that can be charged for a policy, which does not relate directly to coverage of expenses.