Question

You have an insurance policy with a $300 premium and a $500 deductible. How much should you expect to pay the insurance company each month for coverage? A

Answer 1

We first define what a deductible is in order to solve this question.

A describe is the amount of money an individual pays before his insurance plan starts to pay.

Whenever an insurance wants to pay for a cover one has to pay the deductible.

The deductible is payable at the time of compensation.

So in that month when compensation needs to be done, one pays the premium plus the deductible which totals to $800

However in the normal months one pays only the premium.