STREVORE MEYER, CFP®, CKA®
[Length: 2:40 Minute Video]
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.
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 deductable. 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!