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Insurance

Deductible

Understanding the concept of a deductible is essential in navigating the world of insurance. It refers to the amount of money that the policyholder is responsible for paying in the event of a claim. This can be a fixed amount, a percentage of the claim, or a waiting period. The rationale behind this is simple - the higher the deductible, the lower the premium. This means that by agreeing to pay a larger portion upfront, the policyholder can reduce their overall insurance costs.
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