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


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.


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 ?
There is no annual deductible for Prime beneficiaries, but there is an annual enrollment fee of $230 per individual or $460 per family.
Under the Administration plan, Category 7 veterans would have had to pay 45% of VA's "reasonable charges" for medical services until they met the $1,500 annual deductible.
Medical costs over and above your annual deductible are covered by insurance.
This was primarily a result of the diminishing effect of the relatively fixed annual deductible amounts in a period of increasing inflation in physician charges.
On Occurrence-based (mandatory), sums insured for business liability insurance 10 million EUR flat rate for personal injury and property damage, 1 million EUR for pecuniary damage; 2-fold maximized; Insurance limits for environmental liability insurance 5,000,000 EUR flat rate for personal injury, property damage and financial loss, 1-fold maximized; Insurance limits for environmental damage insurance 3,000,000 EUR, 1-fold maximized annual deductible for personal injury 1,000,000 EUR, without further limitation to the individual personal injury claims handling and regulation within the annual deductible by the contractor.
For 2016, the IRS defines a "high-deductible health plan" as "a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses-deductibles, co-payments and other amounts, but not premiums-do not exceed $6,550 for self-only coverage or $13,100 for family coverage.
For 2015, an HDHP is a plan with an annual deductible of not less than $1,300 for self-only coverage or $2,600 for family coverage.
Specifically, Kaiser said, less than two-thirds (63 percent) of non-elderly households with incomes above the federal poverty level have sufficient liquid financial assets to cover a midrange annual deductible of $1,200 for an individual or $2,400 for a family.
Out-of-pocket costs include a health plan's annual deductible, which is the amount before insurance starts paying, as well as any copayments and cost-sharing.
In Wisconsin, for example, a single male nonsmoker, age 30, could pay $468 per year for a plan with a $3,500 annual deductible, a $4,500 out-of-pocket maximum, and a 20 percent coinsurance rate.
Or been told that you'll have to pay the full cost of an exam because you haven't met your annual deductible, and then decided to put off your check-up because you couldn't afford it?

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