What is Insurance Deductible? | Higher or Lower | What is Good | Copy or...

Insurance Deductible is quite confusing for many people. I would like to explain in easy words. 

Suppose you a medical cover for $5000 and your Deductible amount is $1000. It means first you need to utilize your deductible then the insurance company will start paying for your medical bills. This applies to a deductible in other types of insurance like car, bike, health, etc.

Now, assume your first bill is only $80, you need to pay this amount. The second bill is $500. Still, you need to pay for this bill. Thrid bill is $500. Now understand the below

you have already paid $580
the current bill is $500
your deductible is $1000
Your company will pay after $1000
So, Now for the current bill of $500, you are required to pay only $420. The rest $80 will be paid by your insurance company.

Now, if your 4th bill is $35. As you have already paid for the amount equal to the deductible, this amount will be paid by your insurers. Therefore, all bills from now onwards will be paid by your insurance company for your all medical bills.

I hope the explanation has been easy to understand. In other words, the amount you are required to pay before your insurance company starts paying is called the deductible. 

The higher the deductible, the lower the premium is and vice versa. 

By paying more premium you can get your deductible decreased.

I will add more about deductibles in this post soon. Keep reading.

Sunil Chaudhary (Suniltams)
All About Insurance Deductible - Must Know
#Insurance #Insurancedeductible #HealthInsurancedeductible


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