Deductible

The deductible amount is typically specified in the policy, and can vary depending on the type of coverage. For example, a health insurance policy may have a deductible of $1000, while a car insurance policy may have a deductible of $250.

The deductible amount is subtracted from the total amount of the claim, and the remaining balance is then covered by the insurance company. For instance, if you have a $1000 deductible on a health insurance policy and you have a $3000 medical bill, you would pay the first $1000 yourself and the insurance company would cover the remaining $2000.

The deductible is an important part of any insurance policy and understanding how it works is essential to having a good grasp of insurance coverage. By understanding how the deductible works, you can make informed decisions about which policies are best for you.