Health insurance is necessary in today’s world because of skyrocketing medical expenses. Protecting you and your family from medical emergencies is paramount to having a safe and stress-free life. That’s why it is so important to know all the details about health insurance so you can take the right steps to secure your family’s health.
Health insurance jargon can be confusing when buying coverage. Deductibles are often misunderstood. Should you choose a high or low-deductible health insurance plan? Are any plans useful? Let’s compare health insurance plans if you’re confused. First, understand health insurance deductibles.
Health insurance deductibles?
You must contribute to the claim settlement. This is called a deductible. Health insurance has mandatory and voluntary deductibles. The mandatory type usually costs 10% of the claim. If you claim Rs. 1 lakh, you pay Rs. 10,000 for treatment, and the insurer pays the rest. *
The policyholder can choose a voluntary deductible when they buy health insurance online. The voluntary deductible is adjustable. This is how to get a high- or low-deductible health insurance plan. The following sections explain these concepts.
What is high-deductible health insurance?
This plan raises the deductible. If the claim exceeds the deductible, your insurance company will pay. Medical events cost up to the deductible. Insurers cover excesses.
How do high-deductible policies work?
High-deductible health insurance plans let you choose the deductible and coverage. After that, the insurance company will cover any claims that exceed the deductible. *
Example: Consider a Rs. 5 lakh health insurance policy with a Rs. 1.5 lakh deductible. Claim Rs. 3 lakhs. In this case, you will pay the claim up to the deductible (Rs. 1.5 lakhs), and the insurance company will pay the excess if that’s part of your health insurance benefits. Claim settlement is Rs. 1.5 lakhs.
High-deductible health insurance pros and cons
After learning about high-deductible health plans, consider their pros and cons.
So, here’s a summary:
Merits
- Reduced risk lowers your insurer’s premium. Thus, a higher sum insured can cover expensive treatment costs.
- High sum insured coverage is comprehensive. Thus, the policy provides wider coverage.
Demerits
- During claim settlement, a high deductible may cost you *
- You must meet the deductible to file a claim. The policy would fail small claims. *
Should I get high-deductible or low-deductible health insurance?
Since high and low-deductible health insurance plans have pros and cons, you may be wondering which to choose. Your choice depends on two factors:
- Coverage needs
- Affordability
You can go for high deductible health plans if:
- You’re young, healthy and less likely to visit the doctor
- You have individual or group or family medical insurance. In such cases, the high deductible policy pays higher claims, and the existing health cover pays up to the deductible
- You want high critical illness and medical emergency coverage without a high premium
- You can cover the high deductible or out-of-pocket expenses *
A low deductible health plan works for you if:
- Existing illnesses mean frequent claims
- Planned treatments require short-term coverage
- Claim settlement expenses should be low *
- You’re willing to pay more for lower deductible coverage *
- If you have health insurance, it’s limited
The choice is yours
Your family’s health, medical needs, and budget determine whether you choose a high- or low-deductible plan. Assess your coverage needs, premium affordability, and family medical insurance coverage to make an informed choice.
We hope this article has informed you about the difference between high and low-deductible insurance plans. There are numerous points to consider, but if you do careful research, you will ensure your family’s safety without spending too much on health insurance policies.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
