Deductible

Deductible
In a tax return, applies to an expense that may be subtracted from income, and in insurance, signifies the initial amount the insured must pay before insurance reimbursement is made for a claim.
Major Medical Insurance
A form of supplemental medical insurance that covers medical costs not included under basic health and hospitalization insurance. Typically, the insured is required to pay a deductible before the major medical insurance plan begins to pay for covered services.

Accounting Terms Lexicon

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