Definition of Deductibles:
The Meaning of Deductible in Insurance
English Vocabulary Lesson
"Definition of Deductibles: the Meaning of
Deductible in Insurance" can provide English learners with an
essential understanding of the term "deductible" as it is used in
the context of insurance. By learning its meaning, English learners
will be able to better understand and discuss insurance policies, as
well as interact with insurance companies.
This lesson includes a simple definition, example sentences, and
example dialogues to show how the term "deductible" is used in
is the amount of money you have to pay before
your insurance starts to pay for things.
For example, if your car insurance
deductible is $500, you have to pay the first $500 of any repair
After that, your insurance company will cover all or part of the
remaining costs, depending on your insurance policy and coverage
Deductibles can be set as a fixed amount or as a
percentage of the total cost.
, if you have an auto
insurance policy with a $500 deductible and your repair bill is
$1,000, you would pay the first $500 and your insurance company
would cover the remaining $500.
If you had a policy with a 10% deductible, you would have to pay 10%
of the repair cost ($100). The insurance company would then cover
the remaining $900.
- My health insurance has a $500 deductible
for hospital stays.
- You should compare the deductibles of
different insurance policies before you buy one.
- How much is your car insurance deductible?
- I need to meet my deductible before I can
start using my insurance coverage.
- Paying the deductible is part of my
responsibility when filing an insurance claim.
- If I choose a high deductible plan, my
will be lower.
- My health insurance plan has separate deductibles
for different types of services.
- I'm trying to decide if the cost of the repair is more than my
car insurance deductible.
- My deductible will be reset at the start of
each new year.
- To take advantage of my insurance coverage, I must pay my deductible
The word "deductible" comes from the English word "deduct" (take
comes from the Latin word "deducere",
which means "to lead away".
The term was first used in relation to taxes
later adapted for use in the context of insurance
In the context of taxes, it means taking out certain expenses from
your income to reduce how much money you have to pay in taxes.
Unfortunately, I was involved in a minor car
accident. While I was parking, I hit the back of another car.
Thankfully, I was not injured, but my car sustained some damage. Now
I need to file an insurance claim to cover repair costs.
Sue (Liam's insurance agent):
I understand. Let's
have a look at your policy to see what's covered. Yes, it looks like
you have coverage for this type of incident. Please note that your
will need to be paid before the claim is
How much is my deductible
is $500. Once you've
paid that amount, the insurance company will cover up to $2,000 for
Oh no, the damages are $505! But my
is $500! This means I'll have to pay for the
damages out of my own pocket!
Well, no worries, the insurance will happily
cover the additional $5 for you.
Wow, that's so generous of them...
That's why they call it a "deductible
It's deducted from the total amount you have to pay.
Liam: Maybe next time I should get
a better policy with a lower deductible.
Sue: That's always an option, but make sure to
compare the premiums and coverage levels of different policies. It
also good idea to learn how to park...
I just got a bill from my doctor's office and
it looks like they haven't applied my insurance discount yet.
Lance (Nina's health insurance agent):
strange. Let me take a look at your policy. Okay, it looks like you
have a $2,000 deductible
for hospital stays. That means you
must pay the first $2,000 out of pocket before your insurance kicks
Oh, so that's why the bill isn't lower. I
didn't realize my deductible
was so high.
Yes, it's important to understand your
and coverage limits before you receive medical
I actually think I should have checked it
before signing up for the policy. But that's in the past. Do you
think I can switch to a different plan with a lower deductible
Of course! Let's take a look at what other
plans are available. We have one with a $500 deductible
might be more suitable for your needs.
And how much would that cost?
The monthly premium would be higher by
about $20, but you would have a lower deductible
That sounds like a great deal! Let's switch
to that plan then.
Great! Step one is done, now let's start
working on the paperwork.
Will this help cover my current bill?
Retroactive claims are usually not
accepted, so it won't lower your current bill amount. However, the
new policy will start right away and you'll have a lower deductible
for future medical bills.
I hope I won't have any soon!
Disclaimer: This English vocabulary lesson is
for informational and educational purposes only. It is not
intended to be a substitute for professional advice.
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