Insurance
Deductible
The amount you agree to pay yourself before the insurer starts covering a claim.
A deductible is the initial slice of a claim you cover out of pocket. The insurer pays only above it.
Choosing a higher deductible lowers your premium, since you are taking on more of the small costs.
It is common in top-up health plans, where a high deductible is covered by your base policy.
For example
With a ₹1L deductible top-up plan, your base policy handles the first ₹1L and the top-up covers costs beyond that.