A policy excess or deductible is a fixed amount that you must pay out of pocket before your medical insurance kicks in to cover the rest. The policy excess is a great way to lower your premium and is usually used by small businesses that cannot afford to buy whole medical insurance policies for all their employees. It is also beneficial for personal insurance where you want to keep the premium to a minimum. 

 If you and your family are generally in good health, it makes sense to have a deductible on your medical insurance to lower premiums drastically. Many people who baulk at the mandatory nature of health insurance also find this an excellent way to reduce costs but still keep within the law.