Taking a Look Into Deductibles
When you’re choosing between coverage options with your insurance provider, they’ll all look a little bit different. With so many options, it can be difficult to decide which is best for you and your situation. Knowing what the basic terms mean can help you understand in real time what is being offered to you and help you better choose your plan. One of the most important things to learn about when it comes to insurance is deductibles! At Ebensburg Insurance, we want you to understand exactly what your options are and how to navigate them. In this week’s blog, we are going to tell you what you need to know about deductibles and how they affect your insurance coverage.
What is a Deductible?
To start with, we have to define what a deductible is and what it means in the context of your insurance plan. A deductible is the amount of money you have to pay out of pocket before your insurance steps in and begins to pay for a service. It’s often found in coverage for homeowner's, drivers, renters, and health insurance. For example, if your health insurance has a $500 deductible and you need to have a surgical procedure that costs $1,000, you would pay $500 towards the surgery and then your insurance would pay the rest. Some deductibles are high and some are lower depending on the plan you choose with your provider.
High Deductibles
A high deductible plan means that you usually pay a lower premium. This means that your monthly cost of insurance is lower and your deductible is higher. This means that you will pay less routinely, but more straight out-of-pocket if you run into an emergency. People who prefer high deductible plans are usually healthy and don’t need to go to the doctor very often. The downsides to this type of plan come in when there is an emergency. It might be difficult for you to come up with the funds to pay out-of-pocket for a procedure if you have to and your deductible is very high. It also might result in you choosing against medical care in the interest of saving money, which could be bad for your health.
Low Deductibles
Now that we’ve discussed high deductibles, let’s jump into low deductibles. This is the opposite of a high deductible and exactly what you might think, means everything is swapped. While your deductible is low, you are paying more monthly for your insurance but everything else will be covered once you hit the deductible. This includes trips to the doctor, prescription drugs, and more. The downside to this type of plan is the high monthly premium that comes with it. If you don’t go to the doctor very often and you are on a low deductible plan, it might feel like you are spending more money than you really have to.
Choosing What is Best for You
High deductible plans usually appeal to people who think that they will have only a few medical expenses. Low deductible plans usually appeal to people who expect they will have a lot of medical expenses. There is no way to say exactly which plan is the best for everyone. Choosing your plan is all about preparation and what you are planning on, but even then, sometimes our plans can shift and change depending on your circumstances. Because of this, it is important to be flexible and keep communication open with your insurance provider. Depending on your situation, it might make sense for you to switch your plan from a high deductible to a low deductible or vice versa. The team at Ebensburg Insurance is here to help you figure out what works best for you and to get you the best insurance plan. Contact us today at 814-472-9557 to schedule an appointment!
