High or low deductible health insurance plan, which one should you choose?

For example, if the buyer has opted for Rs 20,000 as the deductible and the claim amount for treatment is Rs 1 lakh, the insurer is liable to pay Rs 80,000 only. If the claim amount does not exceed the deductible, then the insurer is not liable to pay any amount.

The premium amount paid for a health plan and the deductible are inversely related. If a buyer chooses a higher deductible amount, it would translate into a lower premium amount.

There are two types of deductible options that the buyer can choose from:

Low deductible health insurance plan

High deductible health insurance plan

In no or low deductible plans, the premium amount paid is on the higher side. However, the buyer does not need to pay anything at all or a small amount for the coverage limit.

In high deductible plans, the policy premium paid is extremely affordable. However, the buyer will have to bear a pre-determined percentage before availing benefits of the health insurance cover.

Those who are more likely to get hospitalised for treatment or surgery due to their age or any pre-existing disease should opt for a health insurance cover with a low deductible and a higher premium. Low deductible health insurance plans are also ideal for those who have an infant or are expecting a baby. This plan helps during health emergencies as the buyer will not have to worry about cash and can focus on the treatment.

Those who are young with good medical record and have no dependents like children or ageing parents can opt for high deductible health plan. This is because these people do not see a chance of getting hospitalised anytime in the future.