deductible

deductible / deductible

NounAdjective

In financial and legal contexts, this term carries a strong association with tax relief and risk management. As an adjective, it describes costs that the government or an organization permits to be removed from a gross total to lower a tax burden, often implying a formal approval process. As a noun, it refers to a specific threshold in insurance contracts. It represents the initial financial burden shifted from the insurer to the policyholder, creating a shared-risk arrangement where the insured must absorb a set loss before coverage activates.

Meanings

Noundeductible

The specific amount of money that an insured person must pay out of their own pocket before an insurance company begins to pay for a covered loss.

"The policy has a five hundred dollar deductible for windshield repairs."

Adjectivedeductible

Capable of being subtracted from a total amount, particularly in the context of taxes to reduce the taxable income.

"Many business expenses are tax deductible if they are necessary for operations."

Last Updated: June 18, 2026•Report an Error