Lower Premium Vs. Lower Deductible

A plan with a $1,500 deductible might seem too steep, but that doesn't mean you'll have a more expensive plan. Why? Because that plan with the $1,500 deductible will have much lower monthly premiums than a plan with a $250 deductible.

So what's better, a lower premium or a lower deductible? First, let's look at the difference premiums and deductibles have on your budget.

• Every month, you have to pay your premiums to the insurance company. Premiums have to be paid even if you never go to the doctor or hospital.

• The deductible is the dollar amount of your medical bills you have to pay before insurance coverage starts. For example, if a plan has a $1,500 deductible, you'll have to pay $1,500 out of your pocket before your plan starts to cover costs.

If you're on a tight monthly budget, lower premiums might be the better way to go. But a lower deductible reduces your out-of-pocket costs when you actually need medical care.

The best way to decide whether you should look for a lower premium or a lower deductible? Talk to a health insurance professional. They have years of experience helping people find the right health plans. But you also want make sure you ask the right questions.

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