Define "deductible."

A deductible is the amount a policyholder must pay out-of-pocket for healthcare services before their insurance plan starts to cover costs. This concept is fundamental in health insurance as it determines how much a patient will need to finance their own care prior to receiving any financial assistance from their insurance provider. Deductibles can vary significantly between different insurance plans, impacting out-of-pocket costs for the policyholder.

The deductible encourages insured individuals to be mindful of their healthcare expenses, as they must cover a specific amount before their insurance benefits kick in. This threshold is typically reset annually, meaning policyholders start fresh at the beginning of each coverage period.

Other answer choices reflect different aspects of health insurance but do not define what a deductible is. The monthly premium represents a regular payment for maintaining the policy, the total amount of expenses covered refers to the limits of the insurance, and the percentage of costs paid by an insurer after a service is rendered pertains to coinsurance, which is distinct from how deductibles function.