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Friday, December 21, 2018

Two Examples of When a High Deductible Insurance Plan Is a Good Idea

A high deductible insurance plan is among the lowest cost healthcare insurance policies available on the market. However, they are not for everyone. Basically, your annual deductible is much higher than other policies. In fact, it is considerably higher than other deductibles on the order of a few thousand dollars. However, before you cringe at the thought of a high deductible, you should think about who benefits from this type of insurance. The following are two good examples.

You are young and healthy
People in this category are at low risk. Insurance companies love to have them in group health coverage plans because they are not expensive to maintain. There are few claims, but they are paying the same as others in a group plan. What young people are doing, of course, is subsidizing everyone else in the group. However, if you are young and need to buy insurance on your own, you can purchase a high deductible, low cost policy. Any typical health issues that come about to a normally healthy person can be taken care of out of your own pocket. If you experience a health issue the requires an extended stay in the hospital, your bills will be limited to the deductible. A young person who is in good health and takes care of themselves, will enjoy lower health insurance premiums.

You are only a few years from retirement and are healthy
When you reach the age of 65, you will be eligible for Medicare. This is a great insurance plan, and there is really nothing that can compete with it, but if you are a few years away from the age of 65 and find yourself without health insurance, a high deductible plan may be exactly what you need. This is especially true if you have a significant amount of assets. By having a high deductible plan, you will be protected from extremely high medical bills that likely will force you to sell your assets and may lead to a bankruptcy. For someone in their late 50s or early 60s, this type of insurance plan can serve as a bridge to Medicare. A health insurance lodi ca agency can provide further information about high deductible plans.

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