What is a deductible?
The word deductible means the amount of money that is subtracted from your income or profit regarding business aspect. Deductibles are the money reduced from your taxable income, and therefore your tax liability will also decrease. The term deductible also means that the amount of money you will pay for the coverage of certain expenses before an insurance company care for the remaining costs. Deductibles are the amount of money that will be deducted from your money for certain reasons. For example, a certain car insurance company will offer you a low premium and high deductibles or low deductibles and high premiums. One of an organization will give you a premium amount of $1100 per month and a deductible amount worth of $5000. And its competitor organization will offer you a premium amount worth of $900 per month and a deductible amount worth of $12000. The organization with a deductible amount of $5000 will be required to pay the car insurance company the amount of $5000 before the car insurance company plans to care of anything. The second organization with a deductible amount of $12000 will also require to pay the amount of $12000.