Many of my clients comment that having a high deductible insurance plan makes no sense to them and feel they might as well not have any insurance at all.
I’m here to let you know there are many benefits and high deductible plans need to be looked at from a different perspective.
The benefits in many cases far outweigh the high deductible. So here we go:
1. The higher the deductible, the less your monthly premium. I will always do the math with my clients. Many times you are paying much more for that lower deductible ( And paying whether you ever tap into it month after month) than if you had to tap into the deductible!
I always look at the out of pocket costs on a good year, (meaning you are healthy and had no health events), therefore only paying your premiums verses a not so great year, (meaning you had a health or accident event and needed to use your insurance.) Most of the time the lower premium amortized over the 12 months plus the deductible and/or max out of pocket is the least expensive way to go.
2. Be aware! The deductible is not your bottom line. The max out of pocket is. It is pointless to pay more for a lower deductible and a High out of pocket max.
3. I offer my clients the ability to take the deductible as high as they feel comfortable because in most cases the only way you ever hit the deductible, no matter how low, is if you land in the hospital.
At that point, the hospital will absolutely set up an interest free payment plan. Where else can you use someone else’s money at no charge?
4. The deductible is a STOP GAP no matter if it is $5000, $10,000, or a $12,500 deductible. In a catastrophic situation at least you know you will pay a certain amount and everything after that is covered.
5. If you are comparing a high deductible to No insurance, be careful on the no insurance, if you have something to lose, they will come after you. Also having insurance sets you up for renegotiated billing.
In my opinion all or any of the above are good reasons to at least consider a high or higher deductible as a possibility of protecting your financial and physical well-being
Based in USA