Should You Opt For a Higher or Lower Deductible in Your Medical Insurance Policy?

Health insurance plans are a hard-to-ignore investment in today’s day and age. With rising instances of lifestyle diseases gripping more people, it becomes imperative to secure yourself and your family with a health insurance policy. Health insurance not just ensures the right medical coverage, but also makes sure that the burden of treatment costs is alleviated. Hence, it is essential to not overlook its importance. When it comes to selecting a health insurance policy, there are different facets to understand and keep in mind. Its selection depends on your requirement and the age group of the beneficiary too. So, you need to understand these features and the different terms of the policy thoroughly. One such critical element to avoid an oversight is the deductible clause in your policy.

What are deductibles in a health insurance plan?

Deductible in health insurance is that portion of the claim that the insured individual must pay before the insurance coverage kicks in. This amount is predefined in the policy terms and is agreed upon at the time of purchase, be it in an individual plan or a family health insurance cover. Hence, the deductible will have a direct bearing on the premium of your health insurance policy. As you may know, premium is the amount you pay to obtain the coverage. Deductibles, in effect, impact the outflow for your insurance cover. To establish a relation of deductibles with premiums, understand that it is inverse in nature, i.e., the higher the deductible, the lower is the premium and vice versa. * Standard T&C Apply

Features of selecting a plan with lower deductibles

Lower deductibles can be right for individuals that require frequent medical attention. A lower deductible means lower out-of-pocket expenses. However, since the policy has a low deductible, the premium is on the slightly higher side. But, you are not required to pay a large sum during claim, and hence, the treatment can be started without any financial woes. * Standard T&C Apply

Features of selecting a policy with higher deductibles

The greatest benefit for a plan with a higher deductible is the lower insurance premium that needs to be paid at each renewal. However, it results in a higher payment that must be made at each insurance claim. So, you need to be prepared to pay a large portion of the claim from your hard-earned savings. A top-up and super top-up policy is an example where the deductible is high, and hence, is best combined with a base insurance cover. * Standard T&C Apply

Now coming to the question: Should you purchase a policy with high or low deductibles?

Plans with high and low deductibles are suited for different needs. For instance, it is ideal to choose a policy with lower deductibles in case the insured individual is a person with critical illness or a senior citizen where the probability of requiring medical treatment is higher. In the case of expecting mothers, it is best to avail a plan with lower deductibles, as it can cover the majority of treatment costs. In addition, if you have a family medical history of specified ailments, it is best to choose a plan with a low deductible portion. On the contrary, a policy with a high deductible is generally recommended for individuals that are young and do not have dependents. Further, if you have a large corpus specifically earmarked for medical treatment, minor procedures can be managed even when your policy requires a higher deductible amount. * Standard T&C Apply To decide on selecting a plan with a higher or lower deductible, you must know your requirements. If you are able to shoulder the financial responsibility of paying a substantial amount for the treatment cost, you may choose a higher deductible, otherwise, go for a plan with low deductibles. A health insurance premium calculator is a tool that can help you to estimate the impact on the premium calculation of your policy. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.