Deductible


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Related to Deductible: Tax deductible

Deductible

An amount or period which must be deducted before an insurance payout or settlement is calculated.

Deductible

1. Able to be taken off of one's tax liability. See: Deduction.

2. In insurance, the amount that a policyholder must pay for a claim before the insurance company will make any payments at all. That is, if an insured event happens, the policyholder is responsible for covering damages up to a certain dollar amount, at which point the insurance company begins coverage. Some insurance policies have an annual deductible; that is, if two insured events happen in a given year, the deductible is only applied once. Other policies have a per event deductible; that is, the deductible applies each time a claim is made. Generally, the higher one's deductible is, the less one pays in premiums on the policy.

Deductible.

A deductible is the dollar amount you must pay for healthcare, damage to your property, or any other insurable claim before your insurance company begins to cover the cost of the bill.

For example, if you have a health insurance policy with an annual $300 deductible, you have to spend $300 of your own money before your insurer will pay whatever portion of the rest of the year's bills it has agreed to cover.

However, in some types of policies, the deductible is per event, not per year. Generally speaking, the higher the deductible you agree to pay, the lower your insurance premiums tend to be. However, the deductible for certain coverage is fixed by the insurance provider. That's the case with Original Medicare.

References in periodicals archive ?
Eventually the vanishing deductible will cost you more than you'll save," Consumer Reports says.
A NEW ANALYSIS POINTS to the difficulty families have paying for the ever-growing cost of health care, especially given increasing deductibles.
A 401(k) and a deductible IRA effectively receive the same tax treatment--so which should a client choose?
Adding up payroll deductions for premiums of both plans, plus co-payments, deductibles and tax advantages, he computed saving about $700 annually.
However, none of the interest on this mortgage is deductible.
Out of this, they would pay a premium of about $2,740 to receive their new catastrophic coverage with the $3,000 deductible.
For example, a catastrophic policy with a $25,000 revolving 36-month deductible simply requires that $25,000 be paid toward a given health condition within a 36-month period by any accepted payer -- including you, another insurance company, worker's compensation, VA benefits, even Medicare.
Updating the experiment's $1,000 deductible to 1994 dollars gives a deductible of about $2,000 today.
In addition, preventive care is fully-covered and not subject to the deductible, so employees do not have to use their fund for these expenses.
Typically, prepaid medical expenses are not deductible in the year of payment; generally, they cannot be deducted until services have been rendered.
Among adults in high-deductible plans who rate their health as fair or poor, or who have a chronic condition or disability, an estimated 45 percent have a cost-related access problem, versus 19 percent of healthier adults who have a lower deductible.