An insurance deductible is the amount of money a policyholder must pay out-of-pocket before their insurance coverage kicks in. For example, if you have a deductible of $500 and incur a $2,000 claim, you will pay the first $500, and your insurance company will cover the remaining $1,500. Deductibles can vary based on the type of insurance, such as health insurance, auto insurance, or homeowners insurance. Generally, higher deductibles can lead to lower monthly premiums, while lower deductibles may result in higher premiums. It's important to choose a deductible that fits your financial situation.