Many years ago we didn't have to compare health insurance rates or worry ourselves about premiums because they were quite low.
People were more concerned about the amount of benefit an insurer was willing to offer.
This resulted in insurance companies offering co-payments for doctors visits and prescription drugs as a way of attracting customers.
Is this still a viable way to go? Unlike many years ago when premiums were not that high, we have a severe case of high rates all around us today.
It is sad that even with this happening around us, people have still kept the mind set of those long gone years not bothering to check the effect on their pockets and coverage.
We are all looking for ways to increase our savings.
Apart from comparing health insurance rates, we can use our deductibles to effect great savings.
I saw an interesting example that I would share.
Note this example is a real life one.
Some calculation was made using a family and a popular health insurance providers rates.
Both would remain anonymous.
The family consisted of a man in his late 40s and a wife of same age and a son aged 20.
This family had the option of two plans.
Study details of the two plans carefully.
Plan 1 Deductible set at $500 for each person = $1,500 plan offers Co-pays for doctors visits and prescription drugs.
Monthly premium for this plan = $644 Plan 2 Deductible set at at total of =$5.
000 Offers no Co-pays Monthly premium for this plan =$210 Now let's look at the difference.
For plan 1 with the low deductible of $1,500, the monthly premium of $644 amounts to $7728.
The plan two with the higher deductible of $5,000 has a monthly premium of $210 amounting to $2520.
The difference in the annual premium between the two plans is a whooping $5208.
Higher than the amount set for the deductible.
I think this is a plan anyone should go for.
I believe that it would be pretty difficult for anyone to just spend up to $5208 paying for doctors visit and prescription drugs.
Note that your premium is known as a "guaranteed loss" meaning that even if you do not need your coverage that year, your insurer would never refund it.
SO why not reduce it to as little as it can be by raising your deductible and making some little expenses from your pocket.
From the example shown above, you can see the huge savings you could make.
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