By Pankaj Babbar, licensed advisor at SAI Insurances · 3 min read
1-minute read
The short answer
- A deductible is the part of a claim you pay yourself before the insurer pays the rest.
- A higher deductible means a lower premium. On one insurer's January 2026 chart, a $10,000 deductible cuts the yearly price by about 45% compared with $0.
- Example, age 60–64: about $1,617 a year with no deductible, $1,294 with $1,000, and $889 with $10,000.
- Pick the amount you could pay tomorrow, in cash, without stress — not the amount that makes the premium look smallest.
- Ask whether the deductible applies per claim or per policy — it varies by insurer.
Detailed guide · 2 min read
What a deductible actually is
Say your parent visits the emergency room and the bill is $3,000. With a $0 deductible, the insurer pays the eligible amount. With a $1,000 deductible, you pay the first $1,000 and the insurer pays the rest. With a $10,000 deductible, you'd pay the whole $3,000 yourself — the policy is there for the big, expensive emergencies.
In return for taking on that first part of a claim, the insurer charges you less for the policy.
How much it really saves
These are yearly Super Visa premiums from one insurer's January 2026 rate chart, at the IRCC minimum of $100,000 coverage:
| Age | $0 deductible | $1,000 | $10,000 |
|---|---|---|---|
| 40–54 | $1,230 | $861 | $677 |
| 60–64 | $1,617 | $1,294 | $889 |
| 70–74 | $2,887 | $2,310 | $1,588 |
| 80–85 | $6,249 | $4,999 | $3,437 |
Travelance Essential plan, annual premium per person, January 2026 rates. The Essential plan does not cover pre-existing conditions; plans that cover stable conditions cost more.
Two things stand out. The $10,000 deductible is about 45% cheaper at every age. And the savings grow with age in dollars — at 80–85, the gap between $0 and $10,000 is more than $2,800 a year.
The trade-off
A deductible doesn't make risk disappear — it moves the first part of it to you. If your parent never makes a claim, the higher deductible was pure savings. If they make one, you'll pay up to the deductible amount before coverage starts. The right choice is the one where both outcomes are okay for your family.
Three questions to choose the right amount
- Could you pay this amount next week without borrowing? If $10,000 would mean a credit card or a loan, it's too high.
- How is your parent's health? Someone with ongoing conditions is more likely to see a doctor, so a lower deductible often makes more sense.
- How long are they staying? A longer stay means more time for something to happen. A middle option such as $1,000 can balance the two.
Per claim or per policy?
This detail is easy to miss. Some policies apply the deductible to each claim (two separate illnesses could mean paying it twice); others apply it differently. It's in the policy wording, and we'll point it out before you buy.
Combine it with monthly payments
A deductible lowers the total; paying monthly spreads it out. Used together, they can make a year of coverage much easier to manage. See can you pay for Super Visa insurance monthly?
How we help
Our comparison tool shows the price at the deductible you pick, across several insurers, side by side. Then we walk through the numbers with you — in English, Hindi or Punjabi — so you choose an amount you're comfortable with, not just the cheapest line.
This article is general information, not insurance advice. Premiums shown are annual figures from Travelance's published Visitors to Canada rate chart (Essential plan, $100,000 coverage, effective January 2026, underwritten by Old Republic Insurance Company of Canada); other insurers price deductibles differently and rates change over time. Your licensed advisor confirms the exact premium and deductible terms for your policy.