Learn what a health insurance deductible is and how it works. We tell you!
There are many and very different options that you can find when hiring for health insurance. So many that it can end up becoming a real mess. To select the one that best suits our needs, it is essential to know the different options and their characteristics. That is why at Cheap Health Insurance we want to inform you and answer any questions that may arise.
In today’s article, we explain what a health insurance deductible is, what its characteristics are and how it works. If you want to know him, keep reading!
What is a deductible?
The first thing is to know exactly what a health insurance deductible is. The deductible was conceived by insurers to be able to share the risk between the insured and the insurance company. In this way, in case of illness, the company is responsible for paying part of the total cost while the insured pays another part, known as the deductible.
This deductible, today, is one of the key terms that we must know when talking about insurance coverage. In short, it is the amount that the patient must pay out of her own pocket.
Insurance premiums will vary depending on the deductible, which is established at the time of contracting. In this way, if we want to reduce the amount we pay for our health insurance coverage, we can choose a plan with higher deductibles.
How does a deductible work?
Now that we know more exactly what a health insurance deductible is, you may be wondering how it works. We explain it to you in a practical way.
If the insured person suffers from an illness, he or she must pay the full amount corresponding to the deductible. The insurance company begins to pay when the deductible line is exceeded until it covers the remaining amount of the total cost.
Types of deductible
Within insurance with a deductible, we can find two types:
- Annual deductible. The account starts from scratch every new year. The patient must pay the amount of the deductible before the insurance covers their expenses. The remaining amount will be paid by insurance.
- Deductible per incident. The patient will pay the deductible each time the insurance is used, while the company will cover the rest of the expense.
As a general rule, health insurance has an annual deductible, while home or car insurance usually has a deductible per incident.
With deductible or without deductible?
At this point, many people wonder if insurance with a deductible is the best option for them. The answer, of course, will vary depending on each situation and after prior analysis of the finances of each person or family.
It is especially a good option for people who take out health insurance for prevention in the event of an unforeseen event. Having insurance with a deductible will make the premium much lower. The higher the deductible, the lower the price you will have to pay for your policy.
If you finally select this option, you will be able to choose the one that best suits your needs and economy from the range of deductibles. If you still have any questions, our agents will be happy to answer them through our contact form.