High Deductible vs Low Deductible Health Insurance – Which One to Opt?

Keeping in mind the rising medical treatment bills and modern lifestyle, individuals choose health insurance to protect their finances if they or their family members face a medical emergency. Individuals should consider a few factors (sum insured, premium amount, coverage features, add-ons, waiting period, etc.) to make a wise decision when choosing a suitable health insurance plan. Deductibles are one of the crucial aspects that affect your coverage amount in a health insurance plan.

A deductible is a pre-decided amount that the policyholder needs to pay upfront during the claim settlement, while the insurer will pay the remaining claim amount. People often feel confused about which one to choose between high and low-deductible health insurance plans.

On this page, we will talk about both of them separately so that you can make a better decision regarding the same. Let’s start!

Overview of High and Low Deductible Health Insurance Plans

Health insurance companies offer mainly two types of deductible options to policyholders when choosing suitable plans – High and Low Deductible. We have discussed each of them below. Please check.

Health Insurance Plans with High Deductible

As the name suggests, a high-deductible health insurance plan carries a higher deductible that needs to be met before you can enjoy the benefits of your plan. Have a look at its key features mentioned below.

1. Policyholders need to pay a lower premium amount upfront.
2. Individuals need to bear a pre-decided deductible amount before the insurer starts to cover the remaining amount. Suppose the deductible amount stands at INR 1 lakh for a sum insured of INR 2 lakh under your health insurance plan. So, you will need to pay the INR 1 lakh upfront to get the remaining coverage.
3. Most critical illness cover and senior citizen health insurance plans come with high deductible options.

Health Insurance Plans with Low Deductible

Low deductible health insurance plans come with a lower deductible amount. So, you will need to pay a lower amount upfront before your insurer provides coverage. Check out the key features of this type of plan mentioned below.

1. Under low deductible plans, policyholders need to pay a higher premium amount. Despite the higher premium, the out-of-pocket expenses are comparatively lower than high deductible plans.
2. The coverage duration for which the insured bears the treatment costs is considerably lower as compared to high deductible plans. It means policyholders will start to get benefits earlier.
3. Policyholders can start getting the coverage amount without undue financial pressure.

Which One to Opt Between High and Low Deductible Health Insurance Plans?

Now that you have understood the basic definition of both high and low-deductible health insurance plans, let’s discuss a few crucial points that will help you choose a suitable plan.

Who Should Choose a High Deductible Plan?

As discussed, individuals need to pay more upfront in high deductible plans. However, this plan still helps people save a substantial amount. The following points could help you choose the plan accordingly.

This plan could be the right fit for – 

1. An individual who is young and has a good medical history
2. People who don’t have immediate medical needs
3. Individuals who need little to no healthcare expenses
4. Policyholders whose none of the elders or senior citizens of your family are covered under the plan
5. A person who is unmarried or don’t have any dependent children
6. An individual who doesn’t expect a planned hospitalization anytime in the future (two years)
7. People who cannot afford to pay the higher premiums

Who Should Choose a Low Deductible Plan?

Individuals need to pay a higher premium amount on choosing a low deductible plan but can get a higher coverage amount and save money during medical emergencies. It could be the right choice for –

1. An individual who is pregnant or elderly
2. People with a history of severe illnesses or planning surgeries in future
3. Policyholders with higher or recurring treatment expenses
4. People who have chronic illnesses that require regular visits to the doctor
5. Persons with an adventurous lifestyle that has high risks of injuries during the policy term.

Based on the explanation made above, you could choose between high and low-deductible health insurance plans.