How Do Insurance Deductibles Work?

Video Transcript

"Hello, my name is Vic Schumacher, with HPE Financial Services. I'm an insurance broker representing many different insurance companies for both health insurance, and life insurance, and annuities. Someone asked me recently, how do deductibles work with an insurance policy? Deductibles basically are the con consumer's responsibility. It's the, it's the financial amount they must pay to have those benefits of that policy start to take effect. If you look at a health insurance policy as an example, you might have a thousand dollar deductible. Once the individual pays that deductible all of the other benefits of that particular policy go into effect, and the the health insurance policy will pay the benefits for the hospital, or the surgery, or whatever takes place. Sometimes, you might have auto insurance with a five hundred dollar deductible. After you pay the five hundred dollars then if you have a car wreck or have to use the insurance policy the benefits of that policy suddenly fall into place, and the, and the insurance company will pick up the repairs or rest of the bills. Deductibles can be low priced, they can be high priced. And usually the lower the deductible your higher the premium. That's how deductibles work. My name is Vic Schumacher, with HPE Financial Services."