Deductible is defined as what?

• A. The total coverage amount
• B. The monthly payment
• C. The maximum paid by you, prior to coverage kicking in
• D. The number of claims allowed per year

Answer: (C)

The key idea is that a deductible is the amount you must pay out-of-pocket before your health insurance starts paying for covered services. It’s the initial share you’re responsible for, and once you’ve met that amount, the plan typically contributes through coinsurance or copays. This is different from a monthly premium (what you pay to have the policy) and not the total coverage limit or the number of claims allowed. In many plans, the deductible is an annual amount, though some plans may have per-incident deductibles. Therefore, the definition that describes the amount you pay before coverage kicks in best captures what a deductible is.