Skip to content

Health Insurance Comparison [Video]

by Financial Design Studio, Inc. / November 11, 2019

Health Insurance Comparison

So today we want to talk about your insurance. And how to choose the right plan for you and your family.

There are lots of factors that go into what we pay for life insurance and the three biggest ones that come to mind are your premium, deductible, and out-of-pocket maximums.


But first we want to talk about the premium. This is actually what we pay for the coverage on a regular and ongoing basis. 


Next we want to talk about deductibles. Deductibles are how much we cover of whatever expense we incur before the insurance actually comes in and actually helps us cover some of those along side us. 

Out-Of-Pocket Maximum

Next we want to talk about our out-of-pocket maximum. This is how much we would pay before our insurance company would step in and covers the rest of the cost for us. 

So let’s talk a look at two different plans with different variables and see how they impact us through out the year. 

Plan A Health Insurance Comparison

This is going to have a 100 monthly premium. It’s going to have a 1500 deductible. And an out of pocket maximum of 5000. 

Plan B Health Insurance Comparison

This is going to cost us more on a monthly basis. $200 per month. But the deductible is only going to be $750. And the out-of-pocket maximum is $3000. 

Now at the insight, it seems as if Plan B is actually going to be a lot more expensive. It is as if we are paying twice as much as if we would for Plan A. The interesting thing however is when we start incurring medical costs, at that breakpoint of about $15000 dollars, Plan B actually becomes our better option. And that is because our out-of-pocket maximum kicks in faster due to the gap between the $5000 and the $3000. And further more our co-insurance period starts faster as well. 

We have an extra $750 to cover in Plan A, that we don’t have to cover in Plan B, so the difference between there. 

Plan A Ideal Health Insurance Situation

Now it is important to note that if we’re someone who doesn’t have very many medical costs, and doesn’t go to the doctor very often, there aren’t very many chronic illnesses, something like Plan A could be very well a good option for us. 

Plan B Ideal Health Insurance Situation

However if there are constant issues that we run into, or we are concerned about catastrophic care, where we are worried that for some reason something might happen to us, Plan B could end up being the better option. 

At the end of the day, determining the best plan for you and your family is a challenging task. But if you think we could be helpful, please let us know!

Ready to find out more?

Contact us today for a free 30-minute consultation!

Recommended Reading

Open Enrollment – Deciding between Medical Insurance Plans [Video]

[Video]Open Enrollment-Deciding between Medical Insurance Plans| We are going to be talking about health insurance because making the right choice here could save you tens of thousands of dollars for you and your family.

Business Owner Operational Reviews

Business Owner Operational Reviews [Video]

Let's discuss what you can be looking at in your own business owner operational reviews as it relates to saving time. Time = Money

Posted in

Financial Design Studio, Inc.

We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever success means for you. Each of our unique insights fit together to create broad expertise, complete roadmaps, and creative solutions. We have seen the power of having a financial plan, and adjusting that plan to life. The result? Freedom from worrying about the future so you can enjoy today.