- The specified amount of out-of-pocket expenses the insured must pay before an insurance company will pay any expenses. In most insurance policies, there exists a relationship between the size of the deductible and the cost of insurance premiums. Generally, one will have a high deductible with low premiums, a low deductible with high premiums, or something in between.
cost to initiate coverage, amount, allowable, sum of money, clause
Related Terms and Acronyms
- First Dollar Coverage — Definition,
- Insurance coverage that does not require the insured to pay a deductible.
- High Deductible Health Plan (HDHP) — Acronym,
- Health plans with high deductibles and low premiums.
- Hurricane Deductible — Definition,
- The payment a policyholder must make to their insurance company before receiving benefits after a hurricane.
- Out-of-Pocket Limit — Definition,
- A cap on the amount of costs a policyholder will ever need to pay with their own money without receiving benefits.
- Policy Declarations — Definition,
- The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
- Stop Loss Insurance — Definition,
- A low premium, high deductible insurance policy with an upper limit on coverage.