ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You have a $500 premium to pay first
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You have a $500 deductible to pay first
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You have a limit of $1, 500 on claims
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You have a $500 new claim clause
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Detailed explanation-1: -A low deductible of $500 means your insurance company is covering you for $4, 500. A higher deductible of $1, 000 means your company would then be covering you for only $4, 000. Since a lower deductible equates to more coverage, you’ll have to pay more in your monthly premiums to balance out this increased coverage.
Detailed explanation-2: -The word ‘Deductible’ is closely associated with insurance and it is the amount of money that you must pay before the insurer begins to cover the rest of the claim amount. How it works: If your insurance plan’s deductible is Rs. 50, 000, you will pay 100% of the eligible expenses until the bills total Rs. 50, 000.
Detailed explanation-3: -How Do Deductibles Work? A car insurance deductible is what you have to pay out of pocket to cover damages from an accident before the insurance company covers anything. For example, if you have a $500 deductible, you’ll have to pay that $500 out of pocket before your insurer will put a dime toward damages.
Detailed explanation-4: -Typically, the greater the policy limit, the greater the premium. The sum assured is the maximum amount that an insurer will pay to the nominee under a life insurance policy.