And how are deductibles for health insurance calculated?
By THE INVESTOPEDIA TEAM, last revised December 29, 2022. VIKKI VELASQUEZ verified the accuracy of the information. What Are Deductibles?
Are you in need of homeowners, auto, or health insurance? If this is the case, you might be curious about deductibles and how they work.
Property, casualty, and health insurance products all have deductibles. In layman’s terms, they are out-of-pocket expenses that you will need to cover before your insurance will cover your claims.
The coverage, the insurer, and how much you pay in premiums all affect the value of your deductible. If your policy has a high deductible, you will typically pay lower monthly or annual premiums because you will be responsible for more costs before coverage begins.
However, lower deductibles typically accompany higher premiums. The insurance plan kicks in much more quickly in these situations.
An overview of health insurance deductibles, as well as a brief explanation of why insurance policies include deductibles, are provided here.
