Purpose and Function of a Deductible in an insurance policy ?? ( P&C perspective)

[LostDollar]

Hello.

I am a consumer, Medicare Beneficiary, and Insurance Forums member.

I would like some comments about the function and purpose of a Deductible in an insurance policy.

I am looking for general conceptual information about Deductibles, why they are in a policy and whether (and why) the poster considers a deductible to be an appropriate or inappropriate feature of an insurance policy.

I would welcome those general conceptual comments from both Health and P&C agents.

(I have started this thread in both sub forums to improve my chances of seeing responses from both groups of agents.)

Thank you.
LD

Cross reference:
Thread in Senior Insurance Forum
https://insurance-forums.com/commun...f-a-deductible-in-an-insurance-policy.109974/

 

[Markthebroker]

I would say, simply put, to give the insured some skin in the game on a claim, and can discourage frivolous and or fraudulent claims.

 

[adjusterjack]

To make a short story long, here's a comprehensive article about deductibles.

An Overview of Insurance Deductibles (insuranceopedia.com)

 

[Newby]

Back when the Obama administration was designing the affordable care act, they added a rule to Medicare. That supplements could not offer first dollar coverage anymore. They felt like first dollar coverage encourages people to go to the doctor unnecessarily compared to if they had a deductible to meet. They would only go if they needed to go. That's why the plan F was removed from the market for people aging into Medicare after the date of that change.
I would have to think that's the same stance that the insurance companies themselves have on deductibles.

 

[adjusterjack]

This is a duplicate thread of:

Purpose and Function of a Deductible in an insurance policy ?? (insurance-forums.com)

Let's not post anything else in this one.

 

[LostDollar]

This is a duplicate thread of:

Purpose and Function of a Deductible in an insurance policy ?? (insurance-forums.com)

Let's not post anything else in this one.

This is a busybody comment which I do not appreciate.

From my thread starting post:

I would welcome those general conceptual comments from both Health and P&C agents.

(I have started this thread in both sub forums to improve my chances of seeing responses from both groups of agents.)

Thank you.
LD

Cross reference:
Thread in Senior Insurance Forum
https://insurance-forums.com/commun...f-a-deductible-in-an-insurance-policy.109974/

Since Health and P&C insurance policies both have deductibles AND I believe that some P&C agents are likely to have different ideas, opinions and comments about deductibles, AND there are some specific P&C agents I hoped might comment and those agents would be highly unlikely to see a thread in the Senior Forum, I deliberately posted in both places.

I am already seeing useful differences in the comments. Your post was helpful too, but I just took away my like for it because of this crap you just dished out.

 

[LostDollar]

Forum members like:
@Allen Trent
@Markthebroker
@fed up
@BADTROUT
@VolAgent

A respected P&C guy who has written a couple of books and posts very infrequently and whose name I cant remember at the moment

And others whose handles I cannot think of on the spur of the moment

Are agents who are far more likely to see and respond to a post in this forum than one in the senior forum. They are people whose comments and opinions I would welcome should they care to express them.

 

[Allen Trent]

Hello.

I am a consumer, Medicare Beneficiary, and Insurance Forums member.

I would like some comments about the function and purpose of a Deductible in an insurance policy.

I am looking for general conceptual information about Deductibles, why they are in a policy and whether (and why) the poster considers a deductible to be an appropriate or inappropriate feature of an insurance policy.

I would welcome those general conceptual comments from both Health and P&C agents.

(I have started this thread in both sub forums to improve my chances of seeing responses from both groups of agents.)

Thank you.
LD

Cross reference:
Thread in Senior Insurance Forum
https://insurance-forums.com/commun...f-a-deductible-in-an-insurance-policy.109974/

Caveat, not a current Medicare beneficiary, merely a donor currently

Purpose of deductible is to retain small risk & transfer larger risk to carrier with deeper pockets. The larger a person's ability to absorb losses, the greater they can choose a deductible to be & obtain premium savings from carrier.

 

[LostDollar]

Caveat, not a current Medicare benefiary, merely a donor currently

Thank you for your donations. Everything helps.

 

[Markthebroker]

Purpose of deductible is to retain small risk & transfer larger risk to carrier with deeper pockets.

That's a perfect textbook response. That may be the exact, or close to it, definition from my p&c insurance study textbook.