Related Words

Deductible: A flat amount a group member must pay before the insurer will make any benefit payments.

High Deductible Health Plan (HDHP): A high deductible health plan (HDHP) requires substantially higher than average out-of-pocket expenses before the insurance company will start paying for your medical expenses. However, the . . . View Full Definition

Tax-Deductible: Any transaction that is not tax-free to the parties involved, such as a taxable acquisition.

Local Taxes: Property, sewer, school, or other community paid to a locality. Local taxes are usually deductible for federal income tax purposes.

Residential Mortgage: Mortgage on a residential property, tax-deductible for individuals up to $1 million.

Coinsurance: When your healthcare insurance has a coinsurance provision, you and your insurer divide the responsibility for paying doctor and hospital bills by splitting the costs on a percentage basis. . . . View Full Definition

Individual Retirement Account (IRA) Rollover: A retirement account that may be established by an employed person. IRA contributions are tax deductible according to certain guidelines, and the gains in the account are tax-deferred.

Points: A fee charged by the lender as additional compensation for making the loan. One 'point' is equal to 1% of the principal amount of the loan.

Roth IRA: A Roth IRA is a variation on a traditional individual retirement account (IRA). Because contributions are made with after-tax dollars, the Roth IRA allows you to withdraw your earnings compl . . . View Full Definition

Copayment (Copay): Amount that a plan member must pay the provider at the time of service, usually after the deductible is met for eligible expenses. (CIGNA Choice Fund offers an employer the opportunity to ad . . . View Full Definition