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High or low deductible health insurance - which to choose?

10 August, 2019

Health Insurance policy purchase requires attention before buying. Finding and choosing a plan that is perfect for an individual or a family is time-consuming. Moreover, if you include the aspect of DEDUCTIBLES into this, it becomes more challenging to balance all the variables and find the right policy. It is crucial to understand the different aspects that affect your coverage before buying any policy. Comparing the high and low deductible plans and their respective costs of the premium will help you to buy the best health policy for your family.




It is crucial to know about the essential terms in a health insurance policy to choose between the high and low deductible plans.


PREMIUM – The regular price paid by the insured either monthly, quarterly, half-yearly, or yearly, to avail the cover of the health insurance plan is known as the PREMIUM.

DEDUCTIBLE – The pre-determined amount you have to bear upfront prior to policy benefits.


All the health insurance plans balance the tightrope between premium and deductible. The insurance premiums and deductibles are inversely proportional to each other. Higher the premium, lower the deductible and vice versa.


Let us understand the two types of deductibles.



  • The upfront premium to be paid is lower.
  • The insured has to bear a pre-fixed amount of deductible before the insurer’s cover starts.
  • It is primarily designed to provide comprehensive cover against emergencies and deadly diseases.



  • The upfront premium amount to be paid is higher.
  • The duration for which the insured bears the cost is considerably lower as compared to high deductible plans. The benefits and cover start earlier.
  • This plan is perfect for those who require regular medical care.
  • The premium is higher; however, the out-of-pocket is way lesser for the low deductible plan than the high deductible one.




You should assess your condition and the requirements of your family while choosing the deductible applicable to you.


Analyze your health care expense – The primary aspect to consider while choosing a deductible is the amount of your medical expenses. You should also find your medical records focusing on hereditary illnesses and your personal history with diseases.


Analyze your current health and future needs – You should consider your current health condition of your family while choosing a deductible. It would be best if you also plan your future health needs, concerning pregnancy, infant care, elderly parents staying with you, etc.


If you are a healthy person with no immediate medical needs and low medical expenses, you should go for a high deductible plan. This is good for young individuals and young families, who may not be able to bear a high upfront premium but can afford to have a delayed cover.


However, if you are pregnant, elderly, have a history of severe illnesses, planning surgeries, or have high medical expenses, then you need an immediate cover. A lower deductible plan has a high premium but provides earlier protection, thus being suitable for anyone with higher and recurring medical expenses.