Final answer:
A deductible is the dollar amount a person has to pay before an insurance plan takes effect and the insurance company starts paying. Other potential costs include co-insurance and co-payments.
Step-by-step explanation:
A deductible is the dollar amount a person has to pay before an insurance plan takes effect and the insurance company starts paying. For example, if you have a $1,000 deductible on your health insurance plan, you would have to pay the first $1,000 of your medical expenses before the insurance company covers the rest.
Other potential costs include co-insurance and co-payments. Co-insurance is a percentage of the costs that the insured individual has to pay, while co-payments are a fixed fee that the insured individual must pay for certain services, such as $20 for a doctor's visit.