The Right Balance

While there are many factors that influence your decision about which health insurance plan is right for your family, often we find that the key issue is figuring out the right balance between premium and deductible. Because all insurance is fundamentally about risk management, the question basically boils down to how much risk you’re willing to take on yourself versus how much you pass along to the health insurance provider. The more risk you take on yourself (the higher the deductible you choose), the lower your premium will be. The more risk you pass to the insurance company (lower deductibles), the higher your premium will be.

It’s a balancing act as you try to find a deductible that you are comfortable with along with a monthly premium that works. When asked what they’re looking for, most people say some version of “the most coverage for the least amount of money.” For most individuals, that balance is usually with a deductible in the $2,500-$5,000 range, but the decision is different for everyone depending on the particulars of your situation. In general we find that the $1,000 or less deductible most people would like to have simply doesn’t make sense when you crunch the numbers.

Talk to AC Forrest about your situation and we’ll help you find the balance that works for you.