Deductible

(redirected from deductibility)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.
Related to deductibility: ductile

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 ?
Overall, the IRS's premium deductibility limits may assist some clients, primarily those who itemize their medical expenses and stand to gain more from premium deductions than the standard deduction.
First and foremost is the fact that the Senate approved MI tax deductibility when it sent its tax package to the conference committee.
The IRS, using the economic family theory again, challenged the deductibility of insurance premiums paid by a parent company and its subsidiaries to a captive owned principally by the parent.
Some private tax attorneys have argued that the case for premium deductibility is so compelling that homeowners should simply take the deductions on their own, and fight the IRS in court in the unlikely event they're challenged in an audit.
In most cases, the special tax deductibility rules should thus not be seen as a deterrent to holding events in this region.
One implication of this finding is that eliminating deductibility for state and local taxes would not necessarily increase federal tax receipts.
Because bargaining agreements do not generally condition continued contributions on deductibility, you may have to bargain for the right to stop making nondeductible contributions.
This article analyzes the tax deductibility of the insurance premiums paid to a captive
Terrorized a member of the House Ways and Means Committee who obliquely suggested a cap on the deductibility of mortgage interest.
The authors recommend that consideration be given to restoring preferential income-tax rates for timber held over the long term; and that adjustments be made in the deductibility of certain management expenses.
McKesson established tax reserves to reflect the lack of certainty regarding the tax deductibility of settlement amounts paid in the consolidated securities class action and related litigation.
Previous Tax Clinic items have addressed the deductibility and potentially tax-favored funding mechanisms of tuition and fees as medical expenses for special-needs children (see Goldsberry, Tenney and Luke, "Deductibility of Tuition and Related Fees as Medical Expenses," TTA, November 2002, pp.