What is a Deductible? How Does it Affect Effect My Premium? & How Do I Decide?
It is usually a good thing when you can find ways to save money. When it comes to health insurance, an easy and simple way to lower your monthly premium is to choose a plan with a higher deductible.
What is a Deductible?
Generally speaking, it is the amount of money you must pay first until the insurance company begins pay out in covered expenses.
In many cases, the same plan will have different deductible levels to choose from.
How does it Affect my Premium?
As mentioned before, choosing a plan with a higher deductible will usually lower the monthly premium. Likewise, choosing a plan with a lower deductible will generally have a higher monthly cost.
How Do You Decide on a Deductible?
According to MedMutual.com , “The three most important factors are;
- Your financial ability to pay the deductible in any given year
- Your overall health and estimated medical expenses
- Your comfort level with paying the amount”
These are all important to keep in mind when thinking about a deductible and choosing a plan.
If you have any questions about health insurance, always speak with a licensed professional.
Sources:
https://www.medmutual.com/For-Individuals-and-Families/Health-Insurance-Education/Health-Insurance-Basics/How-a-Deductible-Can-Lower-Your-Premium.aspx
