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 ?
By contrast, costs that individuals are incapable of incurring, like "fees paid to trustees, expenses associated with judicial accountings, and the costs of preparing and filing fiduciary income tax returns," are fully deductible (Scott, 328 F3d at 140).
Another problem arises in determining from what amount the deductible should be subtracted.
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 "Implications of Risk Equalization" section we briefly describe the expected implications of risk equalization by considering the components of the cost reduction resulting from a deductible. 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.
Answer: Generally, business income policies do not require that the property deductible be exceeded in order to be triggered.
In the in-network column, the carrier says the plan "pays 100% after you pay a copay per visit." But the carrier does not explicitly say anything about how the deductible does or does not affect the cost of in-network diagnostic care.
A NEW ANALYSIS POINTS to the difficulty families have paying for the ever-growing cost of health care, especially given increasing deductibles.
The deductible provision in the commercial property forms developed by Insurance Services Office, Inc.
Because of the increase in value of his friend's home over the 20 years that transpired between when the home was purchased and when it was damaged, the deductible on the policy was $50,000 before any repairs could even begin--on a home that had only cost $30,000.
Only $25,000 of money spent on a property is deductible for homeowners with an adjusted gross income under $100,000, but the balance of those expenses can be earned into the next year.
Contractual negotiation limitations and fear of increased deductibles have led to their skepticism about the plans.