Compensation Glossary

Initial Deductible

Several definitions: 1) Amount of expenses which the insured party must pay before receiving any benefits from the insurance company. (2) An item or expense which is taken away from an individual's gross income in order to reduce the amount of taxable income (e.g. mortgage interest, state taxes, business expenses which are not reimbursed and charitable contributions). See also calendar year deductible, corridor deductible, family deductible, integrated deductible and per cause deductible.