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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 ?
ObamaCare has both failed to curb insurance premiums and contributed significantly toward deductibles that often make care too expensive even for the insured.
Allstate's plan gives customers an immediate $100 off their deductible and another $100 off for each year they're accident-free, up to $500, the same as Nationwide.
By comparison, the average general annual deductible for single coverage among workers enrolled in an employer-based health plan was $1,217 in 2014.
Based on the results of the study, HealthPocket advised consumers not to overemphasize the deductible amount in their shopping but evaluate the deductible in context of other financial dimensions of Part D insurance such as premiums and co-payments.
Request deductibles or a down payment prior to elective procedure
Thus, H may contribute up to $5,000 to an HSA (the lesser of the family HDHP deductible or $5,250).
Even when losses fall within the company's deductible or self-insurance amount, CPAs still should calculate the loss amount for accounting and tax purposes.
Updating the experiment's $1,000 deductible to 1994 dollars gives a deductible of about $2,000 today.
Most importantly, if you can't afford to purchase liability with a $10,000 deductible, don't.
The ability to receive a thorough, comprehensive medical exam from a leading physician is a tremendous benefit for an Avalon Member, and is worth counting the expense towards a plan deductible," continued O'Neill.
For individual enrollees in small group health plans, HealthPocket found that 35% of the plans studied had deductibles that exceeded the Affordable Care Act Limits.
High deductibles are particularly burdensome for people who are sick, the survey shows.