Deductible

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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 ?
This temporary difference will result in taxable or deductible amounts in future years when the reported amount of the asset is recovered or the liability is settled.
It includes plans that would accelerate taxable events to utilize expiring carryforwards, change the character of taxable or deductible amounts from ordinary income or loss to capital income or loss, or change the nature of income from tax exempt to taxable.
The HealthPocket analysis revealed that when plan deductible amounts were taken into account, 36 percent of all health plans had higher out-of-pocket limits than what Bronze Plans will permit.
The turnaround of existing taxable amounts equals or exceeds that of existing deductible amounts within the appropriate time periods.
If your car is declared a total loss, your insurance company typically writes you a check for your car's actual cash value (ACV), minus the deductible amount you selected when you bought your policy.
5% of AGI ($2,475) Deductible amount $ 4,525 Taxable Income $28,475 Taxpayer B: capital expenditures AGI $33,000 Itemized deductions: Medical $7,000 Stair lift $3,500 Less: 7.
A strong earnings history exclusive of the loss that created the future deductible amount (tax loss carryforward or deductible temporary difference) coupled with evidence indicating the loss (an unusual, infrequent or extraordinary item) is an aberration rather than a continuing condition.
When a claimant or auto glass retailer would phone in to make a claim, a Customer Service Representative (CSR) was required to use two user interfaces or access a client's system directly to retrieve a variety of information, including a vehicle owner's policy number, type of coverage and deductible amount.
Each year, the deductible amount is increased to take into account rising medical costs; for 1999, the maximum deductible amount is $6,000.
Note that not using the ticket would not increase the deductible amount.
Individually-owned Health Savings Accounts (HSAs) can be paired with HDHPs to provide the insured with a tax-advantaged way save for the deductible amount and to build savings for future health care expenses.