The useful idea
- The useful idea
In an insurance policy, the deductible (in British English, the excess) is the amount paid out of pocket by the policy holder before an insurance provider will pay any expenses.
- How it works
In general usage, the term deductible may be used to describe one of several types of clauses that are used by insurance companies as a threshold for policy payments.
- Why it matters
Deductibles are typically used to deter the large number of claims that a consumer can be reasonably expected to bear the cost of.
Why this matters
Use Deductible to compare the trade-offs before committing money.
Try this
Use Deductible to compare the trade-offs before committing money.
Test your recall
Which idea belongs to the explanation of Deductible?
- The useful idea — correct
- How it works
- Why it matters
In an insurance policy, the deductible (in British English, the excess) is the amount paid out of pocket by the policy holder before an insurance provider will pay any expenses.
General education only — not personal financial advice.