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 ?
Answer: Generally, business income policies do not require that the property deductible be exceeded in order to be triggered.
But the carrier does not explicitly say anything about how the deductible does or does not affect the cost of in-network diagnostic care.
Since that year, the average deductible has increased 47 percent to $1,217, researchers said.
However, MEI's loss settlement could be either $990,000 or $1,000,000, depending on how the deductible is applied.
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However, the Windstorm and Hail Percent Deductible endorsement, CP 03 21 06 95, specifically states that the deductible is calculated separately for the building and personal property in the building if both are lost or damaged.
The client would pay $3,326 tax on the $8,316 distribution from the 401(k) or deductible IRA, leaving $4,990--less than the $5,821 from the Roth IRA.
6 Collect deductible before patient leaves office via automatic debiting, credit card, cash or check.
In the "Choice of Taking a Deductible" section we present a set of determinants, which we hypothesize will affect the individual choice of taking a deductible for a given premium rebate.
Health savings accounts coupled with high deductible health plans have potential pitfalls, especially for families with low incomes or individuals with chronic health conditions, who are at greater risk of accruing burdensome medical debts and facing barriers to needed health care," Commonwealth Fund President Karen Davis said in a statement.
The corporation receives a dividend-received deduction of 100 percent of the deductible dividend percentage computed in accordance with Sec.
If we are interested in ensuring that we do not overestimate the deductible amount and we do not care about underestimation, we can construct a one-sided confidence interval where we put all of the margin-of-error on one side of the estimate.