Deductibles in insurance policies refer to what you have to pay before the insurer settles your claim. For instance, when you file a loss of baggage claim under your international travel insurance policy, you may have to pay the first $100 before the company chips in with the rest. This is to prevent frivolous claims. In health insurance, if you have a base cover of, say, Rs 5 lakh and buy a top-up policy with sum insured of Rs 20 lakh, the latter will be triggered only after you exhaust the Rs 5-lakh. Your base policy is treated as a ‘deductible' here. Some motor insurance policies offer discounts if you choose deductibles.