Getting health insurance for your family can seem like a difficult task. There are many different options out there and it can be hard to know which is the right one for you. By educating yourself about the different options, you can be sure to make the best decision for you. Here are some things that you need to know about choosing health insurance.
1. High Deductible vs. Low Deductible
One of the biggest factors in your health insurance is the size of the deductible. Many people do not understand why this is so important, but if you choose the right plan, you could save a lot of money.
A deductible is the amount that you must pay yourself before the insurance will kick in. This means that if you have a deductible of $5,000, you will have to pay the full $5,000 before you can start getting major coverage. Then once you reach your deductible you still might only get 80% of your services covered, and you will be responsible for the rest. Obviously it would seem like a lower deductible would be ideal. However, that is not always the case. If you opt for a lower deductible, you also opt for higher monthly premiums. Thus, you could be paying more over the full year in premiums than you would have for the deductible.
The question you need to ask yourself is: how much medical treatment do you anticipate in the following year? If you are expecting a baby that year, are planning on major surgery or have a health condition that requires that you need lots of medications or treatments, then you should go for the lower deductible. If you are fairly healthy and plan to only use your health insurance for emergencies, then you might choose the higher deductible.
2. Option For A Health Savings Account
A health savings account can also be a good option for some individuals. What happens is that each month you pay a slightly larger premium and a portion of your premium goes into a savings account that is managed by your insurance company. Then you can use anything in this savings account to help pay for medical expenses. Usually the savings account can only be used for things related to your medical needs. However, if you don't use the money in the calendar year, it generally will pour over into the next year.
A health savings account can be a good option if you have lots of medical expenses and would like to have a nest egg to help with those costs.
Understanding the basics of deductibles and health savings accounts will help you make the right choice about your insurance.Share