Should You Buy High-Deductible Insurance?

Learn what factors you should consider before signing up for a high-deductible medical plan.

from Condensed from Reader's Digest, | November 2009
Should You Buy High-Deductible Insurance?© Thomas Northcut/Digital Vision/Thinkstock

Also known as “catastrophic” insurance, this option generally lets you pay low premiums and covers most of your routine medical care in exchange for high deductibles.

Lower premiums means more money in your pocket, and since this kind of coverage is designed to be used with health savings accounts, it can lower your taxable income as well. But you should only consider one if you have enough savings to pay for care until you’ve met the deductible, have no serious or chronic health conditions, and have a plan that meets your needs. Some won’t cover prescription drugs, for instance, maternity benefits, or mental health and substance abuse treatment.

  • Your Comments

    • Frisgaro

      Insurance is a gamble; you bet that you’ll be sick, they bet you won’t.  If you’ve taken pains to care for your body and your health history is good, you’re the odds are in your favor.  It may pay off for you.  Be sure you can cover the down side in case you’re wrong.  Remember it is the healthy people who pay for the sick ones in our scheme of insurance.

    • Frisgaro

      Insurance is a gamble; you bet that you’ll be sick, they bet you won’t.  If you’ve taken pains to care for your body and your health history is good, you’re the odds are in your favor.  It may pay off for you.  Be sure you can cover the down side in case you’re wrong.  Remember it is the healthy people who pay for the sick ones in our scheme of insurance.

    • Daveseavy

      It’s very dicey to go with high deductibles, as you never know if/when a catastrophic disease or illness might hit you.  You really have to look down the road, and not just think about the premium you pay today.  Yes, you could save substantial money now, but later on, it could come back to haunt you.  I’d suggest you find a middle ground, so that you have more protection, yet can save a little on the premiums.  Bargain prices aren’t bargains when it comes to health insurance.

    • Daveseavy

      It’s very dicey to go with high deductibles, as you never know if/when a catastrophic disease or illness might hit you.  You really have to look down the road, and not just think about the premium you pay today.  Yes, you could save substantial money now, but later on, it could come back to haunt you.  I’d suggest you find a middle ground, so that you have more protection, yet can save a little on the premiums.  Bargain prices aren’t bargains when it comes to health insurance.