What is a Deductible?
Deductible is the amount which needs to be paid by the insured party before the surety company begins payment of the entire coverage plan. This is preferred by insurance companies to give assurance that relatively small claims will not be paid by them. This is also the form of motivation of these insurance companies so they will not need to pay for minor damages that can easily be paid off by the policy holder. Nevertheless, this implies that any form of accident that the policy holder will encounter after paying the deductible will then be paid by the insurance company.
Different types of health insurance deductibles
Health insurance deductibles vary from particular policy coverage to another. In some options, the insurance company will need to reach the maximum level of the deductible but for some reaching the minimum amount is sufficient for the insurance company to assist you in covering the remainder of the medical expenses.
This is the type of deductible which requires payment of the entire amount of deductible before they start paying the remainder of your medical bills. Typically, insurance companies will require policy holders to submit copies of their paid bills as proof that they have already reached the maximum amount of deductibles.
These type of deductibles are quite similar with the comprehensive type of deductibles but there are medical treatments are limited only to a specific medical procedures. Nevertheless you can still visit the doctor and obtain treatments and medications but through co-payment and not through deductibles.
This type of deductible accumulates the amount of deductible consumed by each member of the family. Thus the deductibles are not calculated based on the individual member of the family.
Amount of deductible which has to be paid
The amount of deductible which needs to be paid by the policy holder is inversely related to the amount of the premium which the insurance company charges. Commonly, lower deductibles are associated with higher amounts of premiums and vice versa. For health insurance policies, the type of medical procedure which will be used on a patient will also bring about a higher deductible payment. Nevertheless, the typical ratio of payment between insurance companies and policy holder offer 80/20 ratio for con-insurance types of health policies.
Emergency room cases are not something which we are hoping to experience in the future. But in case you do encounter one and you have a health insurance policy with an indicated deductible of $500 then you need to pay the $500 before the insurance company starts paying the extra-costs of the procedure. Policy holders will have to pay the $500 dollar out their pocket or whichever amount is indicated in their policy. If it reaches the maximum level then the insurance company will pay the sum of the charges minus any deductible that was earlier paid by the policy holder.
Considering Higher Deductibles
If you wish to pay lower amount of premium then you may inquire about higher deductibles that are offered by health insurance companies. If you believe that this is more beneficial for you then you definitely need to find the health insurance policy which offers higher deductible rates.