(redirected from deductible amount)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.


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 ?
As deductible amounts increase, the insured has a greater interest or stake in the subrogation portion of the claim.
Usually, deductible amounts are cumulative, so if the policyholder mentioned above incurs another covered expense of $400 later in the year, the policy will pay the entire $400 expense since the policyholder has already meet the $500 deductible for the year.
For a deductible amount of d euro, the expected out-of-pocket expenditure equals (van Vliet, 1995):
One option to forestall risk segmentation would be to have the employer vary its contribution levels and the deductible amounts according to employee characteristics, such as age and sex, that are associated with varying levels of expected health costs.
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.
Nothing in the CP 00 10 addresses a situation where different deductible amounts apply to each location.
The 2012 Annual Survey of Employer Health Benefits, completed by the Kaiser Family Foundation and the Health Research and Educational Trust, found that the average deductible amount for employees in consumer-driven health plans (connected to both HSA-qualified CDHPs and HRAs) was $2,086 for individuals and $3,924 for families.
162(1)(2)(A) limits the deductible amount of payments made for health insurance to the taxpayer's earnings from the trade or business "with respect to which the plan providing the medical care coverage is established.
While T may contribute the full deductible amount of $3,000 (Sec.
In the same vein, the revised draft also cut the ceiling of burial payment for policies insuring insane or mentally handicapped persons to half the level of the deductible amount for burial cost for inheritance tax, or NT$555,000 at the current level, except cases covered by other laws, such as student insurance program.
Charity: Donations to approved charities can be offset against income tax; however, in most cantons the maximum deductible amount may not exceed 20 per cent of your salary, and payment receipts must be submitted.