Due to the rising costs of healthcare and health insurance, a lot of people shop for new coverage by only looking at the premiums. They know how much they want to spend and they only look for those insurance plans that match that figure. Unfortunately, the cheapest option isn’t always the best one. And only looking at premiums is definitely not the best way to shop for health insurance. You also have to take into account deductibles, co-insurance and many other factors. In some cases, it’s actually better to consider getting the more expensive plan. Here are three situations when you should think about buying a high-premium health insurance plan.
1. When you suffer from chronic illness
With health insurance, paying more for premiums means more coverage. If you suffer from a chronic disease, a low-premium insurance plan can prove to be a bad decision. Remember, chronic illness also comes with frequent doctor visits and maintenance medications. You may save on those premiums but you’ll still have to pay a lot of money out of your own pockets to cover the other costs. Not to mention that cheaper plans may not have your doctors and specialists in network. If you need to go out-of-network, the costs you’re responsible for can skyrocket.
When suffering from chronic illness, you need to first take a look at the total cost of care. Afterwards, you can choose a plan that meets all your needs, while also making sure that it does not require a high deductible and other extra costs.
2. When you have dependents
Having a family is a huge life changer. No longer will you be alone. No longer will you only have yourself to think about. Now, you will also have to take care of your spouse and children. If you’re a parent, you know what having children means and how much time you have to spend in the doctor’s office.
With a cheaper plan, you have to pay more out of your own pocket whenever you visit the doctor’s in order to treat the flu or to take care of broken arms. You may think that a high-deductible health insurance will save you a lot of money, but it takes just one broken arm to mess up your plans. If your kids are injury prone, a higher-cost plan will provide your finances with the protection they need, while also taking care of your family.
3. When the deductible is too high
No matter how healthy you are, accidents do happen. If you’re unlucky enough to be in one and if you can’t afford the deductible, you’re in trouble. A high-deductible, low-cost insurance plan is only good if you have enough money set aside to meet the deductible. Otherwise, you should look to a high-premium insurance plan.
You shouldn’t be quick to think of a high-premium insurance plan as just a waste of money. There are times when such a plan can save both your life and your finances.