What is the Definition of Deductible?

What is the Definition of Deductible?

The amount of loss paid by the policyholder. Either a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid. The bigger the deductible, the lower the premium charged for the same coverage.

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Insurance?

What is the Definition of Deductible?

What is the Definition of Deductible?

Check out other definition of insurance terms below:


What is the Meaning of ANNUITY PROSPECTUS In Insurance Terms?

Legal document providing detailed information about variable annuity contracts. Must be offered to each prospective buyer.


What is the Meaning of ANNUITY PURCHASE RATE In Insurance Terms?

The cost of an annuity based on such factors as the age and gender of the contract owner.


What is the Meaning of ANTISELECTION In Insurance Terms?

The tendency of individuals who suspect or know they are more likely than average to experience loss to apply for or renew insurance to a greater extent than people who lack such knowledge of probable loss. Also known as adverse selection and selection against the company.


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