1. What Is Deductible Calculation?

Deductible calculation determines the amount a policyholder must pay out-of-pocket before insurance coverage begins. It's a fundamental concept in insurance policies that helps determine financial responsibility.

2. How Does The Calculator Work?

The calculator uses the simple formula:

Where:

• Policy Amount — Total insurance policy value or claim amount
• Covered — Amount covered by the insurance provider
• Deductible — Amount the policyholder must pay

Explanation: This calculation helps determine the remaining financial responsibility after insurance coverage is applied.

3. Importance Of Deductible Calculation

Details: Accurate deductible calculation is crucial for financial planning, understanding insurance coverage limits, and preparing for out-of-pocket expenses in insurance claims.

4. Using The Calculator

Tips: Enter the policy amount and covered amount in the same currency. Both values must be non-negative numbers. The calculator will automatically compute the deductible amount.

5. Frequently Asked Questions (FAQ)

Q1: What is a deductible in insurance?
A: A deductible is the amount a policyholder must pay out-of-pocket before their insurance coverage begins to pay for covered expenses.

Q2: Can deductible be higher than policy amount?
A: No, the deductible cannot exceed the policy amount. If covered amount is zero, deductible equals policy amount.

Q3: What happens if covered amount exceeds policy amount?
A: This would result in a negative deductible, which typically doesn't occur in standard insurance policies as covered amount shouldn't exceed policy limits.

Q4: Are deductibles the same for all insurance types?
A: No, deductibles vary by insurance type (health, auto, home) and specific policy terms. Always check your policy details.

Q5: Can deductibles be waived in some cases?
A: Some policies offer deductible waivers under specific circumstances, but this depends on individual policy terms and conditions.