What is the amount of money that the policy holder will pay before the insurance company will pay on an insured loss?
Asked by: Deja Murphy | Last update: November 27, 2025Score: 4.3/5 (13 votes)
What is the amount of money you pay before the insurance company pays on a loss?
Simply put, a deductible is the amount of money that the insured person must pay before their insurance policy starts paying for covered expenses.
What is the amount of money a policyholder pays prior to the insurance company's payment?
Deductible The amount which you are responsible to pay before benefits from the insurance company are payable. You may choose a higher deductible to lower your premium.
What is the amount of money that a policyholder must pay before an insurance policy will begin to cover the claim?
Deductible: This is the amount you must pay each year before your insurance begins to pay. Some policies have separate deductibles for prescription drugs and hospital care. Some policies have no deductible.
What is the amount the insured pays before the insurance company pays?
Deductible – An amount you could owe during a coverage period (usually one year) for covered health care services before your plan begins to pay. An overall deductible applies to all or almost all covered items and services.
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What is the amount a policyholder pays to an insurance company?
Premium payments: This is the amount a policyholder pays to the insurance company for their coverage. Premiums are often paid monthly or quarterly.
What is the money you pay before insurance?
Deductible. The amount you pay for covered health care services before your insurance plan starts to pay. With a $2,000 deductible, for example, you pay the first $2,000 of covered services yourself.
What is the amount of money that the policy holder must pay before the insurance company will reimburse an insured loss?
Deductible - The amount the insured must pay in a loss before any payment is due from the company. Deferred annuity - An annuity under which the annuity payment period is scheduled to begin at some future date.
What is the amount of money paid for an insurance policy called?
A policyholder contracts with a lender to pay the insurance premium on his/her behalf. The policyholder agrees to repay the lender for the cost of the premium, plus interest and fees.
What is the amount of money that must be paid before an insurance company steps in has an inverse relationship with the premium?
Most insurance policies require policyholders to pay a part of each claim. The deductible is the amount that an insured person will pay before the insurance company pays. Generally speaking, the higher the amount of the deductible, the lower the premium for a specific amount of insurance.
What is the amount paid by policy holder?
An insurance premium is the amount paid by a policyholder to maintain coverage. Factors influencing premiums include age, Health, Lifestyle, Location, and Coverage type. Payment options vary, such as Monthly or Annual Installments. Actuaries calculate premiums using risk analysis.
What is the amount of money that the policyholder pays to the insurer called?
An insurance premium is the amount of money an individual or business must pay for insurance protection. Insurance premiums are paid for policies that cover healthcare, auto, home, life insurance, liability, and other types of protection.
What is the amount that an insurance company makes a policyholder pay as part of any claim?
A deductible is the amount of money that you are responsible for paying toward an insured loss. When a disaster strikes your home or you have a car accident, the deductible is subtracted, or "deducted," from what your insurance pays toward a claim.
What is the amount of money the policyholder pays per claim?
Deductible – An amount that a policyholder agrees to pay towards a covered loss, often as reimbursement to the insurer at the time the settlement or judgment is paid.
What is an amount paid by a policyholder before the insurance company pays for damages?
Deductible: The amount of expenses an insured person must pay before the insurance company will contribute toward the covered item.
What is the larger amount of money you pay out-of-pocket before insurance kicks in for damage or loss of your car or home?
An insurance deductible is the out-of-pocket amount your insurance company requires you to pay when a covered incident occurs.
What is the amount paid or to be paid by the policyholder?
Premium - The payment, or one of the periodic payments, a policyowner agrees to make for an insurance policy.
What is the amount you pay for insurance called?
premiums. The amount you pay for your health insurance every month. In addition to your premium, you usually have to pay other costs for your health care, including a deductible, copayments, and coinsurance.
What is the amount of money an insurance policyholder pays before the insurance company's payment called?
Deductible - The amount you pay before your insurance company covers any costs. For example, if your deductible is $1,000, your plan will not pay anything (except services that are exempt from the deductible such as preventive care) until you have met your $1,000 deductible.
What is the amount of money paid for an insurance policy?
Premium. The amount of money you pay for an insurance policy.
What is the insurance payment called?
Premiums. The money paid to insurance companies for insurance benefits.
What is the payment made to a person as result of an insurance claim?
Insurance proceeds are paid out once a claim has been verified, and they financially indemnify the insured for a loss that is covered under the policy. Insurance proceeds are sometimes paid directly to a care provider (as with health insurance), but usually, it is sent to the insured in the form of a check.
What is the amount you pay before the insurance company pays?
A deductible is the amount you pay each year for most eligible medical services or medications before your health plan begins to share in the cost of covered services.
What is an insurance limit?
Also known as your coverage amount, your insurance limit is the maximum amount your insurer may pay out for a claim, as stated in your policy. Most insurance policies, including home and auto insurance, have different types of coverages with separate coverage limits.
Is insurance paid upfront?
It depends. You may need to pay your homeowners insurance in advance if it's included in your closing costs. With this method, your escrow account is pre-funded once your mortgage is finalized. Some lenders may require you to pay for insurance in advance even if you don't use an escrow account.