Premium and deductible
保費與自負額
The premium is what you pay an insurer for cover, by the month, the year or the trip. The deductible is the amount you pay first on each claim, and the insurer pays only what is above it. A higher deductible usually means a lower premium, but you pay more yourself when a claim happens. The Voluntary Health Insurance Scheme calls it the deductible too, counted for each policy year.
Example
Suppose a claim is HK$12,000, all of it covered, with no other cost sharing.
- Deductible HK$2,000: you pay first
- HK$2,000
- Deductible HK$2,000: insurer pays
- HK$10,000
- Deductible HK$5,000: you pay first
- HK$5,000
- Deductible HK$5,000: insurer pays
- HK$7,000
Raising the deductible from HK$2,000 to HK$5,000 cuts the payout on this claim by HK$3,000.
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