Which of the following best defines the deductible concept?

• A. The amount the insured must pay out-of-pocket before benefits begin.
• B. The amount paid by the insurer after claim.
• C. Co-payment per visit.
• D. Covered only for hospital stays.

Answer: (B)

Deductible means the amount you must pay out-of-pocket before your medical expense insurance starts paying benefits. It acts as a threshold that you must reach with your own payments first; once you’ve met it, the plan typically covers a portion of the remaining allowed expenses (often with coinsurance) and may be subject to a maximum out-of-pocket limit. The other ideas describe related features but not the deductible itself: a fixed charge per visit is a co-payment, the amount paid by the insurer after the claim reflects post-deductible benefits, and coverage limited to hospital stays describes the scope of coverage, not the deductible. So the best definition is the out-of-pocket amount you pay before benefits begin.