This is what happens next. You pay 500 out of pocket to the provider.
For example if you are robbed and you have 6 000 of stolen items but you have a 1 000 deductible you will pay the first 1 000 of loss and the insurance company will pay the remaining 5 000.
Insurance 5000 deductible. Section 80d provides that deduction to the extent of 5 000 shall be allowed in respect payment made on account of preventive health check up of self spouse dependant children or parents made during the previous year. What does it mean when you have a 5 000 deductible health. They ll simply subtract your deductible amount from your claim s approved payout.
What does it mean when you have a 5 000 deductible. Does that mean that i order for my insurance to pay i have to first pay 5 000 out of pocket if so what is the point of the insurance i d be paying over 200 a month as well as paying for all my doctor visits until reach 5 000 then my insurance kicks in. How an insurance deductible works.
So if you have a claim approved for 5 000 and your deductible is 250 your insurance company will issue you a check for 4 750. However the said deduction of 5 000 is within the overall limit of 25 000 or 50 000 specified in a and b above. You won t ever have to write a check or make a payment to your insurer.
Because you met the deductible your health insurance plan begins to cover the costs. The remaining 5 000 is covered by insurance and depending on copay or coinsurance you may still be required to pay a percentage of the costs.