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An amount or period which must be deducted before an insurance payout or settlement is calculated.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
a the car to " Young drivers are typically viewed as a higher risk to insurers and are subject to the highest compulsory excesses due to their age and inexperience making them more likely to claim.
It is the first time that the number of excess deaths amongst girls under five in India was studied at the district level, showing specific geographic patterns of excess female mortality across India's 640 districts.
In the old scheme under the 1997 Tax Code, the income ranges and schedules are different with smaller increments, with a 5-percent tax on those earning no more than P10,000; a P500 flat tax plus 10 percent of the excess for those earning P10,000 to P30,000; a P50,000 flat tax plus 30 percent of the excess for those with incomes ranging from over P250,000 to P500,000, and so on.
Like personal umbrella policies, commercial umbrella policies usually provide coverage in excess of multiple underlying policies.
The first factor to consider in identifying potentially excess land is whether the area in question is marketable as a separate tract.
"With Joe and his team's extensive knowledge of the E&S market and long-term relationships with producers throughout the U.S., we will be able to quickly grow our current Excess Casualty portfolio," says Jack Kuhn, CEO of Endurance Global Insurance, in a statement.
'The Federal Reserves credit-easing policy tools have had a significant impact on the level of excess reserves.
DGC reminded both inbound and outbound travelers to honestly report to DGC in case they intend to carry excess currencies into or out of the island, so as to avoid the possible confiscation.
Assuming the (1) inclusion of a follow form provision in the excess insurance, and (2) absence of a conspicuous exclusion that is contained in the excess insurance but not the primary insurance, the assets of the commercial policyholder are sufficiently protected in the event that a rare, catastrophic mishap involving serious damages were to occur.
However, this practice isn't widespread because far more are willing to carry excess inventory, provided the customer signs up to liability for the minimum-buy-driven excess in whatever manufacturing agreement is signed.
62(c), including the rule to treat excess allowances as wages, all payments under the arrangement are treated as wages; see Regs.
Thus, the outbreak of chikungunya disease was likely responsible for most of the excess deaths observed in Reunion during the first 4 months of 2006.