When a high-premium insurance plan is the better choice

When a high-premium insurance plan is the better choice

December 5, 2016
high-premium insurance plan
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Many Americans only look at premiums when shopping for health insurance. However, due to the high cost of healthcare, this can be a big mistake. If you’re unlucky enough to get hurt in an accident that is not covered by your lower-premium insurance plan, you could lose a lot of money. That’s why sometimes it pays to have a high-premium insurance plan.

Here are some situation where a high-premium insurance plan can save both your life and your finances:

When you suffer from a chronic disease

Health insurance is not that complicated. The more you pay in premiums, the more coverage you get. And, since most insurance policies come with co-payments and deductibles nowadays, paying more for your premiums means that you pay will pay less out of your own pockets in case you are involved in an accident.

If you suffer from chronic illnesses, a low-premium plan will definitely not save you any money. Quite the opposite. You will end up paying even more than you have to, out of your own pockets, due to maintenance medications and frequent doctor visits.

When faced with such a disease, it’s a lot better to examine the total cost of care and select a plan afterwards. Make sure that the plan covers all your needs and does not come with a high deductible.

When others depend on you

Kids need a lot of care. And they tend to spend a lot of time in the doctor’s office, with everything from the flu to broken bones. If you have a high-deductible insurance plans or other cheaper plans, you could end up paying a lot of money out of your own pocket once more.

This is where a low-deductible, higher-cost plan may come in handy. Even though you may pay more each month, you can relax knowing that your kid getting a broken arm will not damage your finances.

When you can’t pay the deductible

We never think of ourselves as getting sick or injured. But this doesn’t mean that it won’t happen. Even though you may not be able to prevent some things, you can protect your finances against the problems which result from unfortunate accidents.

Do not get a high-deductible plan unless you are able to pay that high deductible.

Final word

Health insurance is not cheap. And it will definitely get more expensive as the years go by. But this doesn’t mean that you should only focus on saving money when shopping for health insurance.

Don’t avoid every high-premium insurance plan out there just because they cost more. Instead, try to find the best coverage for you, one that will protect both your health and your finances.

Thomas Hookton is a finance journalist, history buff and science fiction connoisseur. Hit him up via email.

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