MANAGEMENT

Detailed explanation-1: -Deductible is the amount that a policy holder has to pay before the insurance company starts paying up. In other words, the insurance company is liable to pay the claim amount only when it exceeds the deductible.

Detailed explanation-2: -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-3: -In some instances, insurance companies subtract or deduct – hence the term deductible – the amount from the insured loss before paying out up to the limits of the policy. You can check out the meaning of common insurance industry terms in our jargon buster.