Definition: The term "what is deductible" in insurance refers to a certain percentage or amount that an individual, policyholder, or insurance company agrees to pay towards any loss incurred during the coverage period. This percentage can vary depending on the type of insurance, including personal, life, health, accident, and liability policies. Here's what a few examples of deductible amounts might look like in various forms: 1.

Personal Insurance:

- A deductible is often set at 0% for medical expenses (which are covered under the policy), or it can be as high as 5%-20% depending on the level of coverage. - For example, a $3,000 deductible on a car insurance policy might mean that you must pay the entire cost before any claims can be made. 2.

Health Insurance:

- A deductible is set at a certain percentage of your medical expenses (often between 5% and 10%) or it can vary depending on the plan. - For example, let's say you have a $300 deductible for insurance coverage under a health plan, meaning if you encounter an expense that costs $300 or more, you will need to pay the full amount before the claim can be processed. 3.

Life Insurance:

- A deductible is generally set at 5%-10% of the premium. - For example, if you have a $100,000 policy with an average premium of $500 per year, a $50,000 deductible might mean that you will be required to pay $500 in advance before any claims can be made. 4.

Car Insurance:

- A deductible is set at 2%-5% for the cost of repairs or damages to your vehicle. - For example, if you have a $1,000 deductible on car insurance coverage with an average premium of $300 per year, it means that if your car gets totaled in an accident, you will be required to pay out-of-pocket expenses for repairs before any claims can be processed. Understanding the exact terms and conditions of each policy or insurance plan can help ensure that you understand what deductible amounts apply to your coverage. It's always a good idea to contact your insurance company or consult with your policyholder representative for specific information about deductibles in your particular coverage plans.

what is deductible in insurance