When Insurance Kicks In and When It Doesn’t

This Khan Academy resource provides a detailed explanation of the concept of insurance deductibles and how they impact policyholders. It clarifies that insurance typically kicks in after the policyholder pays a predetermined amount, known as the deductible, out-of-pocket for a claim. The deductible serves as a mechanism to reduce the likelihood of frivolous claims and incentivize policyholders to take preventive measures. By understanding how insurance deductibles work, individuals can better navigate the complexities of insurance policies and make informed decisions about their coverage.