Weighing the Costs of Different Deductibles

Weighing the Costs of Different DeductiblesIf you are anything like me, sometimes insurance plans can be a bit confusing to you and you aren’t always sure which one would be best. That being said, I recently had to sit down with my husband and figure out our new insurance options since he is graduating college next month and starting a full-time job. I want to share with you my experience in determining which health insurance plan would be best for our family based on weighing the costs of different deductibles. You will usually find two options with health insurance plans. One option, has a lower deductible perhaps $1,500 with higher monthly payments.

The second option, has a higher deductible perhaps $2,500 with lower monthly payments. Your task is to determine what is right for you. What helped me come to the decision of which plan was right was looking at my medical history. I have a lot of medical problems and spend thousands of dollars each year in medical expenses because of it when you add up provider visits and medications.

Therefore, in my case it makes most sense to have a lower deductible because you know you are going to reach it quickly and then insurance kicks in more and saves you out of pocket. That is me. My husband is totally different. He is healthy as a horse and never gets sick or has medical expenses. If he were single, it would behoove him to pick the higher deductible plan with lower monthly payments because chances are he will never ever reach his deductible so he’ll want to spend less each month. Once I thought about deductibles in this light it clicked and things made sense to me.

Another great source particularly for individuals living in Nevada is Advance Blog. According to this choosing plans with higher deductibles can save you money and let’s face it, we all like to save money. As an example, if you change your homeowners insurance deductible from $250 to $500 you could see savings of up to 15% on the premium. Not too bad if you ask me. Every little bit of savings helps. So depending on the type of insurance you are considering, look at how the deductible could save you money. It might mean you have some high deductibles and some low ones because every policy is different and serves a different purpose.


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