Health Insurance: What is a Deductible?

Posted on June 4, 2012 and updated June 4, 2012 in Group Benefits, Insurance Types, Life Insurance Canada News 2 min read

A deductible, on an individual health or group health insurance policy, is the amount the insured must pay each year before the plan starts to pay for covered medical expenses.

An example is a $100 deductible, meaning the insured must pay the first $100 out of his or her pocket, and then the plan will cover any remaining expenses up to the maximums stated in the plan.

Deductibles are just one of the variables that influence the pricing on an individual or group health insurance plan. The higher the deductible, the less risk to the insurance company and the lower the premium. Conversely, the lower the deductible, the higher the risk to the insurance company and the higher the premium.

Deductibles can vary among different components of the plan, which means prescription drugs may have a higher deductible than vision care or chiropractic services.

For more details on individual health insurance, please visit our Health Insurance Quote Page and for group health insurance, visit our Group Benefits Online Quote Page or contact us at 1-866-899-4849.

avatar