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    HotPotato2009's Avatar
    HotPotato2009 Posts: 706, Reputation: 15
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    #1

    Nov 9, 2010, 11:15 AM
    Is a $2,500 deductible better than a $5,000 deductible?
    I'm shopping around for insurance. It's hard doing it on your own. Now before I call the insurance company, does anyone know anything about this kind of stuff?

    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #2

    Nov 9, 2010, 12:06 PM

    The higher deductible comes at a lower cost for the policy... because you assume the risk for a higher amount of damage responsibility before the insurance will kick in. That lower cost factored over a number of years if you are smart enough to bank the difference will work in your favor even if you do have to make a claim down the road.

    However if you get a low deductible policy and use it too often you may find yourself with a cancelled policy. It's a balancing act.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,304, Reputation: 7692
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    #3

    Nov 9, 2010, 06:47 PM

    One is not "better" it is just different, one you pay all the bills till it is 2500, the other you pay all the bills till 5000.
    Normally you match this with a medical savings plan ( no taxes have to be paid on the money)
    HotPotato2009's Avatar
    HotPotato2009 Posts: 706, Reputation: 15
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    #4

    Nov 10, 2010, 06:46 AM
    Damn that makes me decision hard then lol. I'm pretty healthy, so I think I would go for the lower deductible.
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #5

    Nov 10, 2010, 07:40 AM

    Oops... somehow I read Homeowners insurance into it... but I see its Health insurance... Same deal applies however. Like Fr_Chuck says... it's a balancing act... one you have to make yourself knowing your own situation. THe disadvantage of the medical savings plans is they are use them or lose them... so you don't park money there unless you are sure you will use it before the year is out.

    Figure out how much that higher deductible saves you per year... figure out how many years it takes to pay for the lowe deductibles higher cost... then figure the odds of needing more than annual physicals and blood tests... which everyone should get no matter how healthy you think you are. Stuff can creep up on you fast no matter how young or healthy you are now. High Blood pressure and Diabetes are just two that have no symptoms in early stages.



    Sorry, wish there was a simple answer to this. But what is best for me or someone else, might not be what's best for you.
    HotPotato2009's Avatar
    HotPotato2009 Posts: 706, Reputation: 15
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    #6

    Nov 12, 2010, 12:11 PM
    Comment on smoothy's post
    Thank you for the help. And your right, everyone need a blood test every now and then
    slapshot_oi's Avatar
    slapshot_oi Posts: 1,537, Reputation: 589
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    #7

    Nov 12, 2010, 12:25 PM
    You guys are missing the other piece: the premium. A lower deductible means a higher premium, and a higher deductible means a lower premium.

    If you're healthy and don't plan on using your health insurance often, you should go the higher deductible, not the lower one.

    Secondly, what is this deductible applicable for anyway? Surgeries and stuff like MRIs and CAT scans? Nearly all preventative health care, including blood tests and even visits to the chiropractor, are covered with a copay, usually $20.

    Quote Originally Posted by smoothy
    High Blood pressure and Diabetes are just two that have no symptoms in early stages.
    What? Yes they do. It's whether you're at risk of developing said conditions that you might not be able to tell. But generally, you can still determine your own risk level of these two issues based on your lifestyle. For example, if someone is overweight, rarely exercises and eats foods high on the glycemic index, he's considered a risk for Type II Diabetes. And often times, high-blood pressure and diabetes are indirectly related themselves because they're both linked with obesity. The larger the body, the harder the heart has to work, and the higher the blood pressure.
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #8

    Nov 12, 2010, 01:00 PM

    Costs (premiums) were mentioned... just in different terms.

    High blood pressure has no symptoms... until you measure it you won't know its high... and I know a guy that if you looked at him was in prime condition... outwardly, the sort that girls went ga ga over at the beach, six pack abs and all. But had very high blood pressure at 20 years old. I myself have high blood pressure and it was caught over a period of years as it crept up. Its under control but it had zero symptoms. Not saying undetectible... its easily detectible... but had no symptoms that you felt. How many people have a blood pressure tester in their homes, or check it themselves without reason. Or know what is right for their age... there is no one right set of numbers... it varies with age.

    Early stages of Diabetis is the same... I'm not diabetic but know some people that became diabetic during the time I knew them... was caught by annual physicals and blood test. Not because they "felt" something wasn't right. Sure in extreme cases of any you might, but lesser ones literally can progress far enough long enough irreversible damage can be done before its caught.


    But you ARE absolutely right about risks for getting them... but many still can get either or both while otherwise being physically fit and at the correct weight.

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