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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 ?
However, the agent is contesting application of the deductible stating only the 72-hour waiting period should apply as a deduction.
The silver plan is much more affordable but still far more expensive than employer plans, with deductibles at $2,927 for singles and $6,010 for families.
Silver exchange plans were more likely to impose deductibles on in-network specialist visits, but not that much more likely: The percentage of silver exchange plans imposing deductibles on in-network specialist visits in the states studied has dropped to 39 percent this year, from 41 percent in 2014.
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.
Source: "Hurricane and Windstorm Deductibles," Evans, Ewan & Brady Insurance Agency, Inc.
The short answer is that not all deductible provisions are the same.
Doctors and hospitals will not have to wait three or four weeks for insurance checks since patients will pay deductibles up front.
van de Ven, 2000, Deductibles in Health Insurance: Can the Actuarially Fair Premium Rebate Exceed the Deductible?
However, annual contributions cannot exceed the deductible corresponding to your HSA.
Example 2: The facts are the same as in Example 1, except that H has HDHP family coverage for Hand one of H's and W's dependents, with a $5,000 annual deductible.
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.
When a property or casualty loss is less than the deductible amount or is not covered by insurance, CPAs can help companies recoup some of these losses by putting a team and a process in place to immediately investigate the loss and pursue recovery in court against the responsible parties.