deductible

A deductible is the amount of money you agree to pay out-of-pocket for covered healthcare or insurance claims before your insurance company starts to pay. For example, if your deductible is $1,000, you’ll pay the first $1,000 of eligible expenses yourself. After meeting this amount, your insurance will cover a larger share of costs, often through copayments or coinsurance. Deductibles help share the financial risk between you and the insurance provider, and they can vary depending on your plan. Typically, higher deductibles mean lower premiums, and vice versa.