Deductible

It’s the minimum sum a policyholder is expected to pay before the insurer comes in to pay off the rest. For instance, if the deductible for a policy with a cover of ₹10 lakhs, is set at ₹5 lakhs. Then the policyholder is expected to pay the first ₹5 lakhs before they can leverage the insurance policy.

The deductible amount can vary depending on the insurance policy and the type of coverage. For example, a health insurance policy may have a deductible of ₹5K per year, meaning that the policyholder is responsible for paying the first ₹5K of their healthcare expenses before their insurance coverage begins.

It is important to note that deductibles are different from co-payments or co-insurance, which are the amounts that the policyholder is responsible for paying for each medical service or treatment, even after the deductible has been met.

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