Can you give me an example of a situation where the word deductible is used?
Total Comments: 4
Posted: Mon Sep 10, 2007 02:18 am Post Subject:
Take a look at the post above.
Posted: Mon Sep 10, 2007 05:10 am Post Subject:
Witty response, tcope. But I guess, she wants to know ‘what is deductible?'. Well my friend, you will often find the word used in the insurance business. Deductible is the amount the insured must pay out-of-pocket before his/her insurance company kicks in.
O.K. lemme present it with an example- suppose, your claim amount is $1,000 and you have $250 as deductible on your policy. Then you are required to pay $250 before the insurance company pays $750 ($1,000-$250) towards claim settlement.
Hope this will help you. And please do correct me if I have got you wrong.
Juanita
Posted: Mon Sep 10, 2007 05:57 am Post Subject:
Yeah her question is little vague. Ronalyn, please try to be more elaborate with your posts. It will help the members to explain things more effectively to you. Deductible is quite a household term in the insurance industry.
As Juanita has mentioned above, deductible is the excess amount that you are required to pay to cover for the loss of an insured item. The word is also used in calculating your income for tax payment. There are several items, like- mortgage payment, insurance premium payment or charity, which are deducted from your income before tax is imposed on it. The income tax is then calculated on the ‘residue income'.
In case of insurance, deductible is also the measurement of your financial strength. You can choose higher deductibles to reduce the premium amount paid for the coverage. Higher the deductible, lower is your cost of insurance. But don't get carried away with this fact. Because, it will also create a pressure on your budget. If you have chosen high deductibles, make sure that you maintain enough balance in your account to be able to pay the deductible amount when required.
Regards,
fatman
Posted: Fri Sep 14, 2007 01:27 pm Post Subject:
Fatman, not sure I agree with this
;"In case of insurance, deductible is also the measurement of your financial strength"
I chose a higher deductible (as you mentioned) to reduce the amount of premium, through simple mathmatics (of which I am NO wiz), I figured that the saving from a 250-500.00 deductible (premium wise), I had made up that (250) difference in a year or two. So based on the assumption that most people do not have an accident per year, (and we haven't had one for ten years or better) it was certainly the more financially prudent decision to save that money. See? But it has absolutely no baring what so ever on the measurement of my finanacial strength or weakness.
The deductible generally is 'deducted' from the claim payment, thereby leaving the insured to make that deductible payment to the provider of the service (ie body shop, contractor), or if repairs are not made, or a vehicle totaled for example, again your deductible, was deducted from your loss settlement, and never actually paid to anyone, but was deducted.
Posted: Mon Sep 10, 2007 02:18 am Post Subject:
Take a look at the post above.
Posted: Mon Sep 10, 2007 05:10 am Post Subject:
Witty response, tcope. But I guess, she wants to know ‘what is deductible?'. Well my friend, you will often find the word used in the insurance business. Deductible is the amount the insured must pay out-of-pocket before his/her insurance company kicks in.
O.K. lemme present it with an example- suppose, your claim amount is $1,000 and you have $250 as deductible on your policy. Then you are required to pay $250 before the insurance company pays $750 ($1,000-$250) towards claim settlement.
Hope this will help you. And please do correct me if I have got you wrong.
Juanita
Posted: Mon Sep 10, 2007 05:57 am Post Subject:
Yeah her question is little vague. Ronalyn, please try to be more elaborate with your posts. It will help the members to explain things more effectively to you. Deductible is quite a household term in the insurance industry.
As Juanita has mentioned above, deductible is the excess amount that you are required to pay to cover for the loss of an insured item. The word is also used in calculating your income for tax payment. There are several items, like- mortgage payment, insurance premium payment or charity, which are deducted from your income before tax is imposed on it. The income tax is then calculated on the ‘residue income'.
In case of insurance, deductible is also the measurement of your financial strength. You can choose higher deductibles to reduce the premium amount paid for the coverage. Higher the deductible, lower is your cost of insurance. But don't get carried away with this fact. Because, it will also create a pressure on your budget. If you have chosen high deductibles, make sure that you maintain enough balance in your account to be able to pay the deductible amount when required.
Regards,
fatman
Posted: Fri Sep 14, 2007 01:27 pm Post Subject:
Fatman, not sure I agree with this
;"In case of insurance, deductible is also the measurement of your financial strength"
I chose a higher deductible (as you mentioned) to reduce the amount of premium, through simple mathmatics (of which I am NO wiz), I figured that the saving from a 250-500.00 deductible (premium wise), I had made up that (250) difference in a year or two. So based on the assumption that most people do not have an accident per year, (and we haven't had one for ten years or better) it was certainly the more financially prudent decision to save that money. See? But it has absolutely no baring what so ever on the measurement of my finanacial strength or weakness.The deductible generally is 'deducted' from the claim payment, thereby leaving the insured to make that deductible payment to the provider of the service (ie body shop, contractor), or if repairs are not made, or a vehicle totaled for example, again your deductible, was deducted from your loss settlement, and never actually paid to anyone, but was deducted.
Add your comment