Florida Health Insurance Definitions

Florida Health Insurance Terms:
Define: "Deductible"

Deductible: This is the amount of your actual "out-of-pocket expenses" that must be paid for health services by you, the covered person, before the health plan benefit payment begins. This is usually based on a calendar year.

More detailed answer: In an insurance policy, the deductible or excess is the portion of any claim that is not covered by the insurance provider. It is normally quoted as a fixed amount and is a part of most policies covering losses to the policy holder. The deductible must be "met", that is, paid by YOU the insured, before the benefits of the policy can apply.

What about car deductibles? In a typical automobile insurance policy, a deductible will apply to claims arising from damage to or loss of the policy holder's own vehicle, whether this damage/loss is caused by accidents for which the holder is responsible, vandalism or theft. Third-party liability coverage generally has no deductible, since the third party will likely attempt to recover any loss, however small, for which the policy holder is liable.

And Health? Most health insurance policies and some travel insurance policies have deductibles as well. Typically, a general rule is: the higher the deductible, the lower the premium, and vice versa. The type of health insurance deductibles can also vary, as individual amounts and family amounts. Major medical insurance policies are known for often having a deductible which does not cover the cost of routine visits (e.g., to a doctor's office).

More on Deductibles: From Investor Words"


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