Fear of the deductible? We explain why you shouldn't have it


Fear of the deductible? We explain why you shouldn't have it

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In the insurance market there are various terms that generate confusion among people who want to take out a policy, there are even those who are mistrusted when some concepts are used such as: loss, coverage or deductible. The latter is perhaps the one that attracts the most attention because it is a subject directly related to our pocket.

Most people are not clear about the term because they lack complete information, but at BMI we want to help you understand it easily, providing you with accurate information so that you can make the right decision.

The deductible is a vital feature of health insurance coverage. It is the amount of money that you must pay out of pocket according to the policy you have. This helps you offset the cost of medical care and you will usually find different options.

The deductible was created to align the interests of the insurer and the insured so that both parties seek to mitigate the cost of any claim. In this way, in the event of an illness or accident, the insured covers his portion and the insurer will cover the rest of the medical expenses according to the limits of the plan that has been selected.

Now why is it important? Don't be afraid of the deductible, the answer in simple. Insurers offer multiple deductible options and you can usually choose the one that best suits your needs and, above all, your payment capacity. It is important that you handle it because each person knows their income, therefore, we recommend that when you make the decision to purchase insurance, you base it on your needs, but also on your ability to pay so that you do not commit more than necessary and then upsets your family or personal budget.

How does a deductible benefit me and how does it work?

Your deductible normally benefits your premium, that is, the cost you pay for your policy. The higher your deductible, the lower your premium can be. This is because with a higher deductible, you are assuming more responsibility for the expenses of a claim.

A health plan with a deductible works as follows: in the event of an illness or accident, the insured must pay the entire amount corresponding to the deductible. The expenses that the insurer pays start from the first dollar that is spent in excess according to the benefits and limits of the selected plan.

If you want to lower the amount you pay and are willing to bear a higher cost when you need medical care, then you can choose a higher deductible. Most high-deductible health plans come with lower premiums, which can help you save money in the long run.

On the other hand, the lower the deductible of a coverage, the higher the premium. In other words, you will have to pay more and, this is so, because the health insurance premiums are determined based on the insurance plan you purchase.. It is vital that you manage that the deductible is established from the moment you take out the policy and must be covered. 

Some people who don't normally need medical care may prefer to have a lower premium and pay the rest when they receive care. But there is the possibility of having to pay a hefty medical bill if you have an unexpected illness or injury.

Remember, if you decide to take out health insurance you must carefully analyze the advantages and disadvantages of the plan so that you can select the most appropriate option for your needs, this can help you save money, but also ensure that you receive the coverage you need according to your financial situation.

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