ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An Insurance deductible is an amount which the policyholder will have to shell from his pocket for repairs in the event of loss or damage. Only after this, will the insurance policy come into play. The insurer will pay for the losses as per the limits pre-defined in the policy.

Detailed explanation-2: -A deductible is the amount of money you need to pay before your insurance begins to pay according to the terms of your policy. An out-of-pocket maximum refers to the cap, or limit, on the amount of money you have to pay for covered services per plan year before your insurance covers 100% of the cost of services.

Detailed explanation-3: -The amount you pay for covered health care services before your insurance plan starts to pay. With a $2, 000 deductible, for example, you pay the first $2, 000 of covered services yourself.

Detailed explanation-4: -A deductible is the set amount of money you pay out of pocket for covered services per plan year before your insurance plan starts to pay. A copay is also a set amount of money, but it’s the fixed fee attached to certain covered services.

Detailed explanation-5: -In insurance term, deductible means the amount the insured agrees upon to pay in case of a claim. For example-you have bought a fire insurance policy with Rs. 5000 deductible, in case of a claim up to Rs. 15000, you will have to pay Rs. 5000 before the insurer releases the rest of the amount.