Intelligently Raising Your Medical Insurance Deductible – Strategy 2
Raising your insurance deductible increases your exposure. It means that you will need to pay more for health care expenses in certain situations.
It also means that your cost for medical insurance will be lower. This may make raising your medical insurance deductible an attractive proposition.
Why? Even though the quality of your coverage will decrease as you decrease your monthly insurance premiums, they will not decrease equally.
For each extra dollar you spend because you have lowered your deductible, you may save two, three or ten dollars in premium.
When working out the arithmetic to see if you should raise the deductible on your insurance policy, be sure to compare annual premiums with annual deductibles. Otherwise you will be comparing apples to oranges.
Your health insurance deductible is almost certainly an annual deductible. The year may start on January first of each year or on your policy’s anniversary date, but it probably covers a twelve month period.
Also take into consideration the chance of your meeting your deductible each and every year. If you base your calculations on your meeting your deductible only once every two or three years you are likely to see that there is a huge potential for saving by lowering your deductible and thereby the cost of your health insurance policy.
Raising your deductible is a tried and true method for reducing your expenses. While you’ve got your calculator out, see if you should raise your car insurance and homeowners insurance deductibles as well.