Insurance

What is a Deductible?

Deductible

[dih-duhk-tuh-buh l]

noun

1.

A Deductible is the amount of money a policyholder must pay out of pocket before any insurance payments are made. For example, if repairs to a personal vehicle cost $1,000, but the Deductible on that Policy is $500, the policyholder must pay $500 toward the repairs before the insurance company covers the other $500.

Have A Question About This Topic?

Related Content

What to Look for in an Extended-Care Policy

Here’s a list of 8 questions to ask that may help you better understand the costs and benefits of extended-care insurance.

5 Times When an Annuity Might Be Right For You

Dive in deep to learn about the various types of annuities, how they work, and when they might be right for you.

Did You Know This Fact About Basement Flooding?

A simple precaution can help prevent basement flooding.