Life & Health Insurance Practice Exam 2026 – Your All-in-One Guide to Exam Success!

The purpose of a corridor deductible in insurance plans is to bridge the gap from basic to major medical coverage. This type of deductible is typically found in health insurance policies that have both basic and major medical components.

When an insured individual incurs expenses that exceed the basic benefit amount, the corridor deductible allows those expenses to transition into the major medical coverage. Essentially, it provides a specific threshold that must be met before the major medical benefits take over. This structure is designed to ensure that individuals have a safety net of coverage while also managing risk for the insurers themselves. By implementing a corridor deductible, it encourages the use of basic benefits before drawing on potentially more expensive major medical coverage, thus promoting cost-sharing between the insured and the insurer.