How do Deductibles Work?

General
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Hi Comrades,

I’m trying to grasp the concept of insurance deductibles, but I’m a bit confused. Can someone explain how deductibles work in insurance policies? Specifically, how does it affect what I pay for claims and how does choosing a higher or lower deductible impact my premiums? Any insights or examples would be really helpful!

Thanks in advance…

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  1. The deductible is the amount YOU have to pay before your insurance kicks in. It’s put in place so people don’t nickel-and-dime their insurance companies into the ground.
  2. as with all insurance, it depends on the level of coverage that you need, your circumstances, and individual level of risk
  3. If you haven’t met your deductible, you pay until your deductible has been reached, then your insurance kicks in.

Say you have a $2000 deductible, and you’ve already spent $500 on healthcare for the year. If you break your arm, the first $1500 of the bill will be paid by you, with the remainder being picked up by your insurance (at whatever percentage they pay).

  1. You don’t use a deductible, you pay it out of pocket. At the end of the year, your de
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Hello everyone, it depends on your plans. Most plans have a deductible of less than $1,000 per year, and payments are not typically made monthly. The deductible is paid each time you visit your doctor or go to the hospital until it is satisfied.