Health and Life Insurance

Answer: C - Insurance policy deductibles help to protect insurers from having to pay for small losses. This is because the deductible is paid by the insured. In the event that a loss occurs, the policy holder will be required to pay the initial amount of the loss, up to the deductible amount. A higher amount of deductible will usually reduce the amount of premium that is required to be paid by the insured. This also reduces the risk to the insurance company.