Having an affordable health insurance plan is very important, and thanks to the Affordable Care Act, there certain regulations in place that help make that possible. Still, paying for health insurance can be burdensome or at least confusing for some people, so it’s also important to understand the costs of insurance plans and how to choose the right one for you.
Before we begin breaking down how costs differ between insurance plans, here are a couple of terms you should know:
- Premium: The amount you pay your insurance company each month.
- Deductible: The amount you must pay for your medical care before your insurance company will start covering you that year.
Typically, you have two main options when choosing insurance plans. You can choose a plan with a high premium and a low deductible or a plan with a low premium and a higher deductible. The right choice really depends on how much care you will need.
For instance, if you know that you’ll need a considerable amount of medical care, perhaps for a chronic illness, it’s best to choose a plan with a higher premium. The coverage your insurance company provides will be more generous, and you’ll end up paying less overall. But if you are very healthy and don’t expect to need anything other than preventive care, an insurance plan with a lower premium could work just fine for you.
If you need assistance choosing between insurance plans, contact us at Jeannie Pierce Insurance Agency. We have been serving people in the Hickory, North Carolina area for 25 years.