Deductible in Health Insurance and Car Insurance 2024: Understanding the Basics | ItJunaid.com
Deductible in Health Insurance and Car Insurance 2024: Understanding the Basics | ItJunaid.com
Today we are going to learn what is deductible. A deductible with respect to an insurance policy is the amount of money that a policyholder pays, which is you, to the insurance provider in order for them to pay any expenses for your claim. What is an Insurance deductible?
A deductible is an amount you need to pay toward your covered medical expenses in a policy year before your health insurance kicks in. It is an amount you need to pay before the insurance company starts paying on your behalf. Coinsurance is a percentage of your covered medical expenses you pay after you have met your deductible.What is deductible in car insurance?
A car insurance deductible is the amount of money to pay toward repairs before your insurance covers the rest. Let’s take an example when a person is at work and while he was at work, a bunch of hoodlums broke into his car, smashed his car window, opened and stole his stuff. But the person had car insurance so the fact that he had car insurance means he does not have to pay for the damages that have been bestowed upon his vehicle.The only thing he has to pay is his deductible, so he pays the insurance company, and then the insurance company then in turn repairs all the damages done to his vehicle as a result of the robbery. The first example covered comprehensive coverage, and now the second example gonna cover collision coverage.
So here we go, another example of collision coverage. Let’s say you were reversing out of a parking lot, and while reversing you hit the car behind you and you caused damage to their car and you also caused damage to your car. You are going to have to pay a collision deductible to fix your vehicle. Let’s say you were reversing and you hit the car behind you.
No damage was done to your vehicle but the damage was done to the person who you hit. You won’t have to pay a deductible for covering their vehicle. The insurance company will that money for you.
More on that later, This is an annual deductible, meaning that once you have paid that amount towards covered medical expenses, you don’t have to pay it again until your plan resets. You should check with your insurance provider when shopping for health insurance, it is great to look for a plan with a low deductible
However, there is of course a trade-off. Plans that feature a low deductible come with higher monthly premiums, while plans with lower monthly premiums have high deductibles. So why choose one over the other?
Well, it comes down to what you anticipate your usage will be. If you usually go for one or maybe two doctor’s visits per year, you probably want it high deductible with low premiums. These are often referred to as catastrophic coverage plans because they are not going to kick in until something really significant, or catastrophic happens.
On the other hand, if you visit the hospitals a lot, or you have some upcoming procedures, then you probably wanna go with a high premium low deductible plan.
Conclusion
A deductible is typically the amount of money that you must pay each year before your insurance will pay you for an expense.
In medical billing “Deductible is a fixed amount that patients agree to pay as per contract of the policy before the insurance begins to pay to the provider”.
What is deductible in health insurance?
A deductible is an amount specified by your plan that you have to pay in a given year before your insurance pays a dime. For example, If your deductible is set as $4, 000 and the bill for your visit to the hospital was $2, 000 you have to pay a 100% of that bill. But if your deductible is set at $4,000 and the hospital bill is $8, 000 insurance would kick in to help cover half of that bill.More on that later, This is an annual deductible, meaning that once you have paid that amount towards covered medical expenses, you don’t have to pay it again until your plan resets. You should check with your insurance provider when shopping for health insurance, it is great to look for a plan with a low deductible
However, there is of course a trade-off. Plans that feature a low deductible come with higher monthly premiums, while plans with lower monthly premiums have high deductibles. So why choose one over the other?
Well, it comes down to what you anticipate your usage will be. If you usually go for one or maybe two doctor’s visits per year, you probably want it high deductible with low premiums. These are often referred to as catastrophic coverage plans because they are not going to kick in until something really significant, or catastrophic happens.
On the other hand, if you visit the hospitals a lot, or you have some upcoming procedures, then you probably wanna go with a high premium low deductible plan.
Conclusion
A deductible is typically the amount of money that you must pay each year before your insurance will pay you for an expense.
In medical billing “Deductible is a fixed amount that patients agree to pay as per contract of the policy before the insurance begins to pay to the provider”.
Join the conversation