High Or Low Deductible Health Insurance - Which One To Opt For?

There is a list of jargons related to a health insurance policy, which you have to go through while buying a health insurance policy. Many times, you are unaware of these terms and the fact that they influence the whole nature of your policy. One such term being deductibles. It affects the cost of premiums of your policy and therefore, you must know what it means and understand its significance or role it plays in your health insurance policy.

The deductibles can be high or low based on your choice. Deductibles are inversely proportional to the premium paid in the policy. If the deductible is less, the premium has to be more, and vice versa. Therefore, it depends on your requirements and situations, as to which one of the deductibles should you go for. In this article we shall discuss the same and clear the dilemma, to avoid any confusion in near future, while you purchase a health insurance policy. 

What Are Deductibles In A Health Insurance?

Insurance Deductible is the amount of money that you will pay from your pocket before the coverage of your insurance policy is applied to your expenses and the insurer incurs the cost.  Therefore, the health insurer makes a payment of the cost that exceeds the deductible amount. This makes sure that only genuine claims are made in case of an emergency. 

There are two different types of deductible options namely low deductibles and high deductibles.
These deductibles share an inverse relationship with the premiums that are to be paid for your health insurance policies. 

High Deductible In A Health Insurance Plan 

The first type of deductible option is high deductible in health insurance plans, the features of which are as follows: 

• For a high deductible, a low amount of premium is to be paid. 
• Mostly the critical illness and senior citizens cover come with the high deductible option. 
• In this case, the pre-decided deductible amount has to be paid by the policyholder before availing of the health insurance policy. 

Low Deductible In A Health Insurance Plan 

Another common type of deductible option is a low deductible in health insurance plans. Following are the features of a low deductible health insurance plan: 

• You can choose this option if you wish for a regular health insurance plan with no specific features in demand. 
• You will have to pay higher premiums for your purchased health insurance policy 
• You don’t have to pay anything from your pocket until the coverage limit is reached, unlike the high deductible option. 
• You can get the treatment without any worries regarding the payment of the expenses. 

Benefits of Low And High Deductible Options 

We shall discuss the advantages of these options individually to understand which of the following is best suited for you and meets your requirements.

1. Low Deductible Option

A low deductible option makes you pay higher premiums but saves you from huge expenses while making claims at times of an emergency in a hospital. You can choose a low deductible plan if: 

• You have a critical illness or senior citizen cover. 
• You have to visit the doctors often due to any pre-existing conditions. 
• You are expecting a newborn in the family. 
• You are planning to undergo major and expensive surgery in the near future.
    

2. High Deductible Option  

In this case, if you opt for high deductibles, you will have to pay a low amount of premiums but will have to incur the expenses of the hospitalization at times of an emergency before it reaches the coverage limit. Following are the cases in which you can choose high deductibles: 

• You have a good medical history and are less likely to be admitted for major illnesses. 
• If you are young, you may choose this option.
• If you do not have dependent children or are unmarried. 
• If you can manage delayed health covers. 

Must Check: Health Insurance Co-Payment V/S Health Insurance Deductible

Health Insurance Deductible Explained

Conclusion

You can compare the pros and cons of the two different options of deductibles and make a choice accordingly. You must also consider the factors like pre-existing diseases, dependent children, financial budget, age, and many more. 

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.