In plain English
This is a yearly pay-first amount for covered costs. The insured person pays those covered costs until that total is reached within one policy year. After that point, the insurer begins to pay under the policy.
In context
Here, “annual deductible” labels the amount the insured person must pay for covered costs during that policy year before the insurer starts to pay under the policy.
- Situation
- Reading premium, deductible, excess, copay, limit, and out-of-pocket fields
- What it communicates
- labels the policy-year deductible entry in the benefits summary
Meaning limits
By itself, the term does not state the amount or which particular costs count toward it.
Examples
“After he had paid enough covered hospital bills to meet the annual deductible for that policy year, the insurer started to pay under the policy.”
“She checked how much of the annual deductible she had already paid toward covered care that year.”