Definition of "Flat deductible"

Same as term Deductible: amount of loss that insured pays in a claim; includes the following types:

  1. Absolute dollar amount. Amount the insured must pay before the company will pay, up to the limits of the policy. The higher the absolute dollar amount, the lower the premium.
  2. Time period amount (Elimination period/Waiting period). Length of time the insured must wait before any benefit payments are made by the insurance company. In disability income policies it is common to have a waiting period of 30 days during which no income benefits are paid to the insured. The longer this time period, the lower the premium.
The consumer would be well advised to select the highest deductible (by dollar amount and/or time period) that he/she can afford. First dollar coverages are very costly. A high deductible allows the insured to self-insure expected losses those of high frequency and low severity.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Assistance program for the financially needy. Medicaid, also referred to as Title XIX of the Social Security Act, was enacted in 1965 at the same time as medicare. It is a joint ...

Buy-sell agreements found in partnerships, sole proprietorships, and close corporations. Either the business entity or the surviving members of the business agree to buy out the interest of ...

Coverage of a single life, in contrast to group life insurance, which covers many lives. ...

Individual or organization that is a potential purchaser of an insurance product. ...

Same as term Expected Loss: probability of loss upon which a basic premium rate is calculated. ...

Portion of a premium paid by an insured that has been allocated to the insurance company's loss experience, expenses, and profit year to date. ...

Coverage for all kinds of personal property whether inside or outside an insured's (home) to include jewelry, musical instruments, cameras, fine arts, and precious stones. The insurance ...

Representation of ownership rights such as stocks. ...

Rate applied when two or more separate buildings are insured under one policy, and/or when two or more separate contents are insured under one policy. ...

Popular Insurance Questions