Many people have considered purchasing a prepaid medical product but always wonder: What is a deductible? Well, for many this concept is not clear and it is for this reason that we have considered explaining it in this note.
Origin of a deductible
Traditionally, the deductible health insurance was created by insurance companies to share the risk between the insured (the client) and the insurance company. In this way, in case of an illness, the insurer pays a part of the total cost and the insured another part, this being known as the deductible. Today the deductible is part of health insurance companies, as well as prepaid medicine companies.
Definition of deductible
The deductible is the economic value that, within the medical expenses recognized by the prepaid medicine company, is paid by the person who purchased the plan. Its amount will be specified within the contract and this will be applicable from the first claims until completing the total personal amount per year.
In other words, we can define the deductible as the value that is subtracted from the payment made by the prepaid medicine company to the beneficiary in the event of an illness. The user must cover the deductible before the prepaid medicine company recognizes paying the amounts corresponding to the coverage in a claim.
It is important to understand that a prepaid medicine plan with a deductible will be cheaper than a plan without a deductible. Similarly, the higher the deductible, the lower the monthly fee for that plan.
How does the deductible work?
A prepaid medicine plan with a deductible works as follows: In the event of illness, the insured must pay the amount corresponding to the deductible in full. The expenses paid by the prepaid medicine company start from the first dollar that is spent more than the deductible.
Why are deductible products a good alternative?
Some people may think that a prepaid medical plan is too expensive, however, seeing it as an investment in an unforeseen future in our health and that of our family, it is a great option. We can mention this since this type of plan has a lower cost about its similar ones without deductible, maintaining amounts and most of the coverage considered as main.
Finally… Is a product with a deductible better or not?
This decision is based on the circumstances of each person, on a previous analysis of family finances and on properly planning our future.
For example, the decision to choose a plan with a deductible or without a deductible will depend on certain conditions such as: have we thought about having a family? The best option is a product without a deductible, which has a large amount of coverage for maternity. Don’t we want to be parents yet since we are newlyweds? So the alternative of a product with a deductible is the best option at that time.
In short, regardless of the option you choose, the most valuable thing is the peace of mind that you and your family will be protected in the event of an illness.
