Definition: Definition: A deductable amount for an insurance policy is the amount that the insurer will pay for medical expenses if you choose to use your policy as a payment plan for future medical bills. Deductibles are typically set at levels ranging from 0% to 10%. If you choose to use your deductible, the insurer will not cover any out-of-pocket costs until you have paid off all of the deductible amount. Example: A health insurance plan that has a deductible of $500 would pay for most out-of-pocket expenses. For instance, if you chose this plan and had a total medical bill of $1500, your insurer would only cover 500 (the deductible) so they would not have to cover any other costs. Definition: An insurance premium is the amount that an individual pays each month or every few months for their insurance coverage. The term "premium" can also refer to a fee charged by the insurance company to cover medical expenses and out-of-pocket costs associated with insurance coverage. For example, a policy might charge a premium of $50 per year. Example: If you choose an insurance plan that has a high deductible (meaning the amount you would pay for your medical bills before your insurer covers any other costs), you will typically have to pay a higher premium each month or every few months. This is because you are paying for your policy rather than covering yourself.

what is a health insurance deductible