Life & Health Insurance Practice Exam 2025 - Free Practice Questions and Study Guide

A Per Cause Deductible is a financial arrangement in health insurance where a separate deductible applies to each individual illness or accident. This means that for different medical incidents, the insured would need to meet a specific deductible amount for each one before the insurance coverage begins to pay. This type of deductible can influence how individuals approach their healthcare decisions, as they may be required to pay out-of-pocket expenses multiple times for different conditions or accidents within the same policy year.

In contrast, deductibles that apply to all family members collectively or as a single deductible for all medical incidents do not operate on a per incident basis and provide a broader coverage use. Additionally, the concept of a one-time annual charge for medical services refers to a different structure of health plans, often called a copayment or annual premium, which does not involve the concept of deductibles tied to specific causes or incidents. Understanding this distinction is key in navigating health insurance options and anticipating out-of-pocket costs related to different health scenarios.