How to Choose a Health Insurance Deductible

Health insurance deductibles are on the rise. This trend is partially because consumers save premium costs when they choose a high-deductible policy. Do you know how to choose a policy with a deductible you can afford? Use several tips as you choose the best health insurance for your needs.

Can You Afford the Deductible?

When you sign up for a high-deductible policy, you might think it's okay because you can stretch that deductible over the year. What happens, though, when you have an accident and reach that deductible in one day? Make sure you have money saved to cover the deductible you choose.

Can You Afford the Premium?

Low-deductible policies often include low-cost premiums. With the money you save, you can balance your monthly budget, save an emergency fund or save the deductible cost. However, saving money each month could backfire if you're slammed with a large bill after your child is injured while riding his bike or if you're diagnosed with a chronic illness. Consider all of your risks as you decide whether to opt for low monthly premiums or a low deductible. 

Does the Deductible Cover Your Family or Just You?

Certain health insurance policies include a low individual deductible but a high family deductible. If you have kids, you could end up paying a large deductible during the year. Read the fine print and understand exactly what the deductible is for each person in your family.

Do You Need a Major Procedure This Year? 

If you're considering a major medical procedure like a knee replacement or want to get pregnancy early in the year, choosing a health insurance policy with a high deductible might make sense. You'll quickly meet your deductible and then have the rest of the year "off." However, if your major procedure will happen late in the year, you might be better off with a low-deductible policy since you'll probably face significant expenses both this year and next year. 

Health insurance isn't an option, but you can choose the deductible you pay. With these tips and information from your insurance agent, you choose a policy at a price that meets your needs. 

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