Insurance

Should You Opt for a Higher or Lower Health Insurance Deductible?

Today’s lifestyle has made it crucial for everyone to purchase a health insurance policy. However, looking for the perfect health plan is a task and evaluating all variables makes ita challenge. But you cannot purchase a health insurance policy without understanding its various aspects. If you wish to purchase a good deal for your family, you must compare ‘high’ and ‘low’ deductible plans along with their respective premium costs.

If you are deciding between high and low deductible plans, you must also be well-aware of medical insurance jargon. An important term is ‘premium’, which is the amount payable in order to avail the health insurance cover. Another word is ‘deductible’, which is the amount borne by you before the insurance plan compensates for the expenses. However, you must know that the insurance premium is inversely proportional to the deductible. If the deductible is high, the premium will be low and vice versa.

There are two types of deductibles and they are as follows:

  1. Higher deductible

Under this, you are supposed to pay a biggerproportion of the claim amount to the insurer before the insurance kicks in. The basic motto of this plan is to offer you with a comprehensive cover in case of emergencies or any major illnesses. The premium paid here is low since you pay a higher deductible. 

  1. Lower deductible

This cover will be useful if you need regular medical checkups. The proportion in which you are supposed to pay for the treatment is lower when compared to a higher deductible plan. Out-of-pocket expenses are also lesser compared to high deductible plans. However, you pay a higher premium here.

Choose the right plan for you

Consider your requirements and your family’s when you select the deductible. Analyze your health condition as well as consider the kind of coverage you might require in the future. It is wise to plan and purchase the deductible keeping your future health needs in mind. You can also buya family floater health insurance planwhich covers all members of your family under a single policy.

Next you will need to look into your healthcare expenses as it is an important variable to consider. Maintain a record of your medical history that includes any pre-existing conditionsprevalent or present in the family members.

If you’re fit enough, i.e. not suffering from any medical conditions whatsoever, opt for a higher deductible. But if you’re old or have a medical history which makes treatment a requisite, then opt for a lower deductibleplan as it would be more appropriate to deal with expensive medical bills.

Features of health insurance

Healthcare expenses are rising and the only solution to this is purchasing an adequate health insurance policy. Listed below are a few benefits.Let’stake a look.

  1. Compensation for hospital bills
  2. Protection for alternative treatments
  3. Option of tax deduction
  4. Cashless treatment
  5. Health check-ups for free

A convenient method to buy health insurance policy is by visiting the insurance company’s website. Before purchasing, make sure that you calculate the premium using a health insurance premium calculator and check multiple quotes.

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