Options:
A. When sharing the cost of a payout
B. Before insurance payouts begin
C. When signing up for an insurance plan
D. After a company has paid a claim
Answer:
B) Before insurance payouts begin
Explanation:
An insurance deductible is a certain amount of money that the insured must pay when filing a claim before the insurance company starts paying the expenses related to the claim. The deductible is set at the moment the insurance contract is made, and the higher the deductible, the lower the premium.
For example, in an auto insurance with a $500 deductible: if you have an accident and your car is damaged, you are responsible for the first $500 and then the insurance company covers the rest.
