Choosing A Plan: Balancing Premiums and Deductibles

Premiums and deductibles are different depending on the plan you choose. 

Plans can be describe in 3 ways.

Low Deductible – High Premium Plans


  • With this type of plan, you pay a large amount each month and in return, will only have to pay a small amount before your insurance plan begins to help cover the cost of your medical bills.
  • A small deductible is always nice when you actually get sick. However, paying a high premium each month may become expensive and could make it hard to cover other bills during the month.
  • A low deductible, high premium plan may be right for a person who knows they will need a significant amount of medical care on a regular basis.  However, if you are relatively healthy or do not plan on needing lots of medical care, a plan with a lower premium and higher deductible may be more realistic for you.

High Deductible – Low Premium Plans


  • These plans lower premiums but will have higher deductibles. This means even though you pay a smaller amount each month, the amount you must pay before your insurance begins to help pay is higher.
  • Don’t be fooled by plans with low monthly payments. These plans often have extremely high deductibles. It is important to look and see if you would be able to afford to meet such a high deductible. Often plans with lower monthly payments have deductibles that would be almost financially impossible to meet if you became seriously ill or injured.

Plan with Balanced Premium and Deductible


  • These types of plans work best for most people because the deductible and premium are both realistic for their financial situation.
  • When looking at plans, look at the deductible and premium for each plan. Make sure that you can realistically afford both the premium and the deductible for that plan, without putting yourself in a bad financial spot.