Leah Kelvin
Active member
Insurance premiums have a deductible, which must be paid prior to any coverage being activated. The deductibles are either normal which can be set amounts or per incidence. Percentage based deductible calculate the amount of deductible as percentage of sum insured commonly found in health plan. Split Deductibles have different deductibles for each coverage within one policy. Vanishing Deductibles reduce with time for claim free drivers; this is usually seen with car insurance companies as a reward for safe driving. Cumulative Deductible accumulates throughout the year such as in health insurance where it is applicable to all covered medical expenses within the policy period. Calendar year Deductible resets every year meaning that individuals must satisfy it before their covers start working again. It’s important that you understand these types of deductibles before choosing an insurance plan because they might impact your out-of-pocket expenses and overall coverage, Taking into account factors like financial status, risk tolerance and how this deductible would affect premiums will help you make a wise choice.
