What specifies the amount an insured must pay before policy benefits start?

The correct answer is the deductible. In the context of insurance, a deductible is the amount of expenses that must be paid out of pocket by the policyholder before an insurance company will pay any benefits. For instance, if an insurance policy has a deductible of $1,000, the insured will need to cover that amount for covered services before the insurer contributes to costs. This mechanism is significant because it shares the risk of loss between the insurance company and the insured, ensuring that the policyholder has some financial responsibility towards their healthcare expenses.

In contrast, a stop-loss limit refers to a cap on the amount an insured must pay in total for medical expenditures within a specified period, often used in conjunction with high-deductible plans. A copayment is a fixed amount the insured pays for specific services, typically at the time of service, and is usually applicable after the deductible has been met. A pre-existing condition clause relates to health insurance and affects coverage for conditions that existed before obtaining a new policy, rather than specifying an amount the insured must pay.