Health Insurance Deductibles
When looking for the right health insurance policy, choosing the right deductible is one of the most important decisions you can make. While there is no right or wrong amount when it comes to your deductible, there are certain factors to consider to make sure that you choose the right deductible for your specific needs.
Your deductible is the amount of your insurance policy that you have to pay before your insurance coverage will kick in. Unlike some of your other insurance policies, your health insurance has a deductible that you only have to meet once a year, not every time you make a claim. Once you cover the cost of your deductible, your insurance company will start to cover any medical costs at a co-insurance rate. Co-insurance rates will generally cover around 80 percent of all medical costs, so you are only left paying around 20 percent. This rate will continue until you reach the maximum out of pocket level for your policy, and then your insurance company will start to pay for 100 percent of your medical costs.
Typically, the higher your deductible is for your policy, the less your premiums will be. However, you want to make sure that you choose a deductible that you can actually afford. While you may be tempted to choose the lowest deductible price possible, you may end up paying much more each month for your premiums.
To help figure out what deductible/premium level will work for your needs, you should consider how much you can afford to pay for your premiums each month. Talking with your insurance agent can help to make the process much easier.
For more insurance deductible tips and to make sure that you have the right amount of health insurance protection for your specific needs, contact Young Insurance in Burbank, California.