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?

Thank you! Oops!

Related Content

Insurance Needs Assessment: When You're Newly Married

Insurance Needs Assessment: When You're Newly Married

Marriage changes everything, including your insurance needs.

Life Insurance for Young Adults

Life Insurance for Young Adults

Getting Life Insurance before 40 isn’t as uncommon as you think. Find out why this can be a super smart decision for just about anyone.

Annuity Comparison

Annuity Comparison

This calculator compares a hypothetical fixed annuity with an account where the interest is taxed each year.