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Health Insurance Deductibles

​Getting health insurance is easy these days but understanding the terms and conditions of every insurance with the terminology that is used while getting insurance is often very difficult to understand if the person has no background knowledge about the subject.

One of these terms is the “health insurance deductibles” and we must get into the details to understand what it is.

What is a health insurance deductible?

A health insurance deductible cost is the specific amount or upper limit of the amount which must be paid before the insurance begins paying your medical costs. For example, if the health insurance policy​ has a 5000-deductible amount, then Rs 5000 must be paid from your pocket before the insurance company starts covering any of the expenses of your medical visit. This amount is paid directly to the medical provider. This deductible amount is not be paid to the insurance company but directly to the place where all the medical expenses have occurred.

At the beginning of a policy period, this amount generally rests at 0 but with whenever the period restarts this deductible amount has to pay.

Deductible vs Premium

The premium amount is the one which is paid every month. The premiums are to be paid until one no longer has an insurance plan. The deductible is the amount which is only to be paid if the person uses their insurance.

Premium prices generally increase with the number of people who increase in the insurance, if you decide to cover your spouse and children then the premium price will automatically become higher. Premiums are mostly debited directly from the paycheque.

High vs Low Deductible Plan

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High Deductible low premium insurance plan has gained popularity in the recent years because low premium means that the monthly costs incurred by the person are very low while If the person uses the insurance, they will have to pay a high deductible. This plan is good for a person who anticipates very low medical conditions and also is not in the condition to afford a high premium every month. While if you feel that the person is more prone to medical conditions then a lower deductible plan must be preferred.

What is a Right Deductible Plan?

This largely depends on the number of persons you are insuring, and how many doctor visits you anticipate in a year. A high deductible plan is good for people who rarely visit a doctor and would like a lower monthly expense. A low deductible plan means that the person must be in an affordable condition to pay the premiums and is not into savings much.