Define deductibles, copayments, and coinsurance.

Deductibles, copayments, and coinsurance are three key terms related to insurance policies. A deductible is an out-of-pocket amount the insured person must pay before the insurance company starts to cover expenses; for example, a \(1,000 deductible requires the insured to pay the first \)1,000 of their healthcare costs. A copayment (or copay) is a fixed amount the insured person pays for each specific service or type of healthcare; for example, a \(30 copay for a doctor's office visit. Coinsurance is a cost-sharing arrangement between the insured person and the insurance company where both parties pay a percentage of the covered expenses after the deductible is met; for example, 20% coinsurance means the insured person pays 20% of the covered expenses and the insurance company pays the remaining 80%.