Answer:
The amount that an individual or family is responsible for paying before being eligible for insurance coverage is known as the deductible. A deductible is a specific dollar amount or a percentage of the total expenses that the insured person must pay out of pocket before the insurance company starts covering the remaining costs.
For example, let's say you have health insurance with a $500 deductible. If you incur medical expenses that are covered by your insurance, you would need to pay the first $500 of those expenses yourself. Once you have paid the $500 deductible, your insurance coverage would typically kick in, and the insurance company would start covering a portion or all of the remaining costs, depending on the terms of your policy.
It's important to note that different insurance plans have different deductible amounts and structures. Some plans have a single annual deductible, while others may have separate deductibles for different types of services, such as medical, prescription drugs, or hospital stays. Additionally, some plans may have a deductible that applies to the entire family, while others have individual deductibles for each family member.
Understanding your insurance deductible is crucial because it affects how much you need to pay out of pocket for healthcare services before your insurance begins to cover the costs.
Step-by-step explanation: