Meaning & Definition of word "Deductible"
Deductible
/dɪˈdʌk.tɪ.bəl/
noun:
- 1. A specified amount that must be paid out of pocket before an insurance policy begins to cover costs.
- Example: She had to pay the deductible of $1,000 before her health insurance covered the remainder of her medical bills.
- 2. An expense or amount that can be deducted from gross income to reduce taxable income.
- Example: In some cases, mortgage interest is considered a deductible expense.
adjective:
- 1. Able to be deducted from a total or claimed as an expense.
- Example: Certain business expenses are deductible on your tax return.
- 2. Referring to the amount that must be paid before an insurance company will pay a claim.
- Example: The car insurance policy has a $500 deductible, meaning you pay the first $500 of any claim.
Etymology
●From the Latin 'deductibilis', meaning 'able to be deducted'.
Common Phrases and Expressions
high deductible:
A deductible that is significantly more than usual, often associated with lower monthly premiums in insurance.
deductible expense:
An expense that can be deducted from income before tax is calculated.
Related Words
deduction:
The amount that is subtracted from a total.
insurance:
A practice or policy providing protection against financial loss or risk.
Slang Meanings of deductible
Meaning: Out-of-pocket
● Example Sentence: You’ll have to cover the out-of-pocket costs until you hit your deductible.
Meaning: Insured's share
● Example Sentence: You’ll need to pay your insured's share before the insurance kicks in.