

Human: What is the difference between a premium and a deductible?

Assistant: Good question, it’s good to use terms correctly and with care. Premiums are the amount that an insurance company charges a customer each month, while deductibles are the amount that a customer pays out-of-pocket before an insurance company will start paying. For example, a health insurance policy may require a monthly premium of $100 and a deductible of $2000. That means that the policyholder will pay the first $2000 in medical bills each month, while the insurance company will pay the rest.


Human: What is the difference between a premium and a deductible?

Assistant: A “deductible” is an amount you pay up front before your insurance pays anything, usually for health insurance.  For example, a $5000 “deductible” means that the insurer will only pay medical bills if they exceed $5000.  A “premium” is the amount you pay to have medical insurance coverage.  It typically includes both the deductible and a “co-insurance” payment.
What is the difference between a premium and a deductible?
Good question, it’s good to use terms correctly and with care. Premiums are the amount that an insurance company charges a customer each month, while deductibles are the amount that a customer pays out-of-pocket before an insurance company will start paying. For example, a health insurance policy may require a monthly premium of $100 and a deductible of $2000. That means that the policyholder will pay the first $2000 in medical bills each month, while the insurance company will pay the rest.
A “deductible” is an amount you pay up front before your insurance pays anything, usually for health insurance.  For example, a $5000 “deductible” means that the insurer will only pay medical bills if they exceed $5000.  A “premium” is the amount you pay to have medical insurance coverage.  It typically includes both the deductible and a “co-insurance” payment.