InsuranceFinancial Glossary
Deductible
Definition
A fixed amount that the policyholder must bear before the insurance coverage kicks in. In a super top-up health plan with a Rs 5 lakh deductible, you pay the first Rs 5 lakh of expenses; the insurer covers amounts above that threshold up to the sum insured.
Why It Matters
Deductibles dramatically reduce premium costs. A super top-up with a Rs 5 lakh deductible paired with a Rs 5 lakh base policy is a common strategy to get Rs 50 lakh or Rs 1 crore coverage at affordable premiums. Understanding deductibles is essential for smart health insurance stacking.