When it comes time to choose an insurance plan, you probably will have a few options. One of the biggest factors to consider is your deductible. While both high and low deductibles have benefits, you have to decide which is best for you.
High Deductibles
One of the biggest benefits of choosing a high deductible is a lower premium. A higher deductible means that you will ultimately pay more of any medical costs, which means that you are charged a lower premium month to month. This can make it the ideal option for those who have a large cushion of savings and want to reduce their monthly payments. This is taking a bed that you will only have to pay for a major medical expense very occasionally, but the lower monthly payments could be worth the increased payment responsibility.
The downside is, of course, that if you do ever have a large medical bill, you will have to pay a larger portion of it. If you do not have thousands of dollars on hand to do this, you could end up going into debt to pay for your treatment.
Low Deductibles
The benefits and drawbacks of low deductibles are opposite of high deductibles. You are probably going to have to pay more each month for your premium, but if the time ever does come that you have a large medical bill, you will have to pay less of it. This is often a good option for those that anticipate having high medical bills or those that are not in the financial situation to pay a large portion of their bills, should they ever have one.
