Nowadays know what is deductible It is essential because it is common for all families to have an insurance policy for their car and also a life insurance policy, but above all the car policy is essential because by law it is mandatory with at least basic coverage.
Then you go out to look for your insurance policy without understanding the terms, so so that you do not get surprised and pay attention to those terms, keep reading the information below …
Insurance: what is deductible?
- ¿What is deductible? In principle, the word deductible has to do with the amount of money that you as the holder of the insurance policy will pay in the event of a claim before the insurer pays the expenses incurred.
- The deductible is not the coinsurance. In the event of a claim, the expenses are shared between you as the insured and the insurer.
- It also works as a guarantee in the event of a claim, because the insurer has no obligation to cover a claim whose amount is less than your deductible.
What is deductible and how is it calculated?
1.You know in general what is deductible, but to know how it is calculated it has to do with the type of insurance policy you hire, because when it comes to cars, the model, make, and value according to the blue book are taken as a reference, while if it is one of life, gender, age and health status are taken as reference.
- But beyond these factors, its amount must be consented to by you, since you must always give your consent on the amount of the deductible.
- You should consider that the higher the deductible, the lower the cost of the policy and of course with a low deductible, the cost of the policy will be higher.
- However, there are policies without a deductible, for this reason it is important that you read the conditions of the insurance policy before making the final decision, because they are policies with extensive coverage but their cost is quite high.
- Even a deductible can be a specific amount of money or a percentage that derives from the total policy you take out.
- For this reason, when the deductible is high, the insurance policy premium will be lower.
- The truth is that for your information, the amount of the deductible can always be found on the cover of the policy or on your main page in the Declarations section.
Example of how it works and what is deductible
If you still have doubts about how the deductible works, with an example you can see:
- Let’s suppose that your deductible has a specific amount of $ 5000, then that money is what you will pay when an accident occurs with your car and if the total cost is higher, the insurer will take care of the rest.
Therefore, in this situation, if the loss is estimated at $ 20,000, you will receive $ 15,000 in a check or as compensation.
- When the deductible is expressed in percentages of the total insurance. In the event that the total is an amount of $ 100,000 and the deductible is equivalent to 2%, it will mean that your deductible is $ 2,000.
So before a claim, those $ 2000 are deducted from what you receive.
- Well, you should also consider that deductibles have increased, for example in states where more hurricanes occur than in others and therefore are more prone to catastrophic events, special deductibles apply and are expressed in percentages.
- However, you should also bear in mind that if you want to save with your car insurance, you should increase the deductible, since insurance policies are kept under the regulation of the laws according to each state and they are obliged to strictly comply with those laws.
What is the deductible in a health insurance?
- ¿What is the deductible in health insurance? Well, it means the amount of money that you pay, before your medical plan begins to pay. For example, if you have a deductible of $ 1000, you will pay $ 1000 and the rest will be paid by the insurance company.
- However, in terms of medical insurance, there are plans that pay for all of some services such as disease programs or medical check-ups before you meet your deductible, so you should review all the details of the plan you choose.
- In fact, today there are plans that pay the full cost of some of the preventive benefits before the deductible is reached, while other plans have separate deductibles that work for some services such as when it comes to prescription drugs.
What is a health insurance deductible?
- ¿What is a deductible in health insurance? Well, it means the amount of money that you will pay before the insurance begins to pay, because health insurance simply takes care of the cost of expenses greater than the value of your deductible.
- Keep in mind that the deductible is payable once a year, therefore assuming that you need health insurance coverage in the month of January, then in that month you will have paid the deductible, but if later a second event occurs in the In the month of June, you will not pay the deductible and you will pay it again the following year when you need insurance coverage, but you must check with your insurance company, because the year from its beginning in January to December is not always considered.
What are deductible expenses?
- ¿What are deductible expenses?, because it can be explained simply by thinking that you subtract a small amount of money that you will pay to the Treasury.
- Fiscally, they are those that are considered essential to be able to carry out a business or professional activity.
- They are expenses that must be perfectly justified and accounted for, that is, you must have the corresponding invoice, not a purchase receipt, as they must also be recorded in the accounting books in Accounts-Gratos e Inversiones.