No lie there when we say that health services are costly in every country nowadays. A health plan is a great financial backup in case of a medical emergency. It is not your fault if you fall sick or meet with an accident, but it is your responsibility to prepare for it. Buying a health plan is a brave step towards preparation. However, choosing the right plan for you or your family can be tricky. You may doubt you are being scammed or wasting your money on services you might never need. And your doubt is completely valid.
Choosing the wrong plan can be a burden on your pocket. This is the reason most people save money on their own. But health plans are not as complicated as they seem. You just have to put in a little effort to understand. It is always an advantage to go through each and every term that comes with a health plan. Only then, you should opt to choose a plan that will be actually beneficial for you.
What is the meaning of deductible in insurance? The word deductible stands for an amount that goes from your pocket first. For instance, you pay the initial 1000 dollars or more before your insurance plan pays the rest. A deductible is used as an assurance that your claim isn’t false. Mostly every health plan requires a deductible. Either low or high. In case of an emergency, the bill of your services needs to go above deductible before you can claim insurance. However, in most cases, the insurance company offers certain services for free. Like mandatory checkups and much more. Insurance companies partner with organizations to facilitate you and make a network.
Types of health plans
There are two types of health plans when they are organized in terms of deductible.
1. High Deductible Health Plan (HDHP)
This health plan has a high deductible than a normal health plan. But since you pay a large amount before insurance takes care of the rest, it has a lower premium. Premium is an amount you pay on a monthly basis to keep your plan active. Often people choose to go for high deductible health plans to save money on premiums.
2. Low Deductible Health Plan (LDHP)
The way the name says it. A low deductible health plan has a higher premium but a lower deductible. It means you won’t need to have a large amount in hand to claim it. Often people opt for LDHP to avoid paying a massive amount in one go.
How to know what health plan is best for me?
It depends on various factors. For instance, many people choose low deductible plans because they are planning to conceive. This way, they won’t need to have a large amount to claim when the time comes. However, if you are someone who has a deductible ready even in an emergency, you can opt for the high deductible health plan. If you are not looking forward to any medical expenses in the future, you should opt for the high deductible health plan. A high deductible can be 1000$ or above. Why invest in costly premiums if you are not planning to use the plan anytime soon? It doesn’t make sense.
How much money do you save?
Do your math. Especially if your goal is to save money. Then, consider sitting with your insurance agent. Ask what will save you more money eventually. Calculate how much you will save on each plan. And don’t worry. It is not as complicated as it seems from the outside.
Services a plan provides
Many plans restrict you to avail services from doctors or hospitals that don’t work in contract with your insurance company. However, this doesn’t apply in case of an emergency. Go through these terms as well and give them a thought. You have the authority to choose what works best for you.
If you are facing a health condition, it is always an advantage to choose a low deductible health plan. You would be paying higher premiums but it would cover monthly drugs. Furthermore, it will come to save in case of an unfortunate emergency. You will only need to find insurance that is happy to support you.
A health insurance plan is an efficient way to cope with uncertain health risks. It is an investment that you can make in yourself and your family. It is to assure that you are your family live a happy future. You should never hesitate to buy one. The rise in medical costs is no longer hidden to anybody. The last thing you want is to spend all of your savings in case of misfortune. There are different health plans. You should go through all of them, and ask your insurance agent as many questions as you need to. Your health and your money are important. You should keep this in mind before making the final decision.