Budgets and Money

Should you have a high deductible health plan?

If you're wondering whether it's better to have a high deductible in order to save on health care premiums, here are three questions you need to answer.

How to Budget Money for Healthcare Expenses: Is a High Deductible Health Plan Really Worth the Extra Savings?

Many Americans under the age of 30 find themselves selecting affordable healthcare options on their own for the very first time. And while the allure of saving money with a high-deductible health plan may be preferable, there are certain tradeoffs when selecting this type of plan.

Having a high deductible on your health plan is really no different than the deductible on your car insurance policy. The higher your deductible, the lower your premiums. However, if you wreck your car – or in this case get sick or injured and use your health benefits – you’ll need to come up with the cash.

To see if a high deductible health plan is for you, ask yourself these three questions:

  1. Do you work in an occupation where you often get sick?

    For example, do you work in the health care field? Are you an educator or daycare provider that is exposed to germs on a daily basis? Do you work in a high-stress occupation? If your work can have an impact as to how often you may need to visit the doctor or pharmacy, then you might consider a health care plan with a lower deductible. That way, you’re not having to pay out-of-pocket every time you need care.

  2. Are you a do-it-yourselfer?

    There are some of us who feel the need to visit the doctor more often for common ailments (such as a flu bug, cold, migraine, and minor stomach upset), while others feel more comfortable treating themselves and avoiding the doctor whenever possible. Whichever category you land in, that’s okay. Everyone has their own comfort level. The point is, if you’re a do-it-yourselfer and rarely seek out regular medical treatments, then a high-deductible plan may work best for you by saving you more money in the long run.

  3. Is your lifestyle riskier than most?

    What are your hobbies and outdoor activities like? For example, do you ski, snowboard, mountain climb, scuba dive, or pilot a plane? Whatever you do, if the chances are higher than normal that you’ll injure yourself, you may be looking at hospital, doctor, and physical therapy bills that could end-up being a big financial burden. In this case, it might be better to opt for a lower deductible.

For more information on how to budget money, visit the Protective Learning Center.

Was this article helpful?
1
2

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

WEB.1708.07.15