Under health insurance, there are generally two categories of deductibles: high deductibles and low deductibles. The deductible is the amount that the policyholder pays out of his/her own pocket before making a claim in the event of hospitalization. Let's take a scenario to understand it better. The policyholder has chosen Rs 1,000 as his/her deductible. Now in the event when the policyholder is hospitalized and the claim amount has come up to Rs 10,000, s/he will first pay Rs 1,000 and then make a claim.

Now, usually premium is affected by the kind of deductible the policyholder chooses. High deductible leads to lower premium and vice versa.

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