Insurance Deductibles: How Big Should Yours Be?

With more people purchasing their own health insurance policies, it is important to become more informed on the components of the policy you select. An often-misunderstood element of health insurance is the deductible. Insurance Deductibles: How Big Should Yours Be?

A deductible is the amount of money you must pay before your insurance benefits begin to pay. Typically, the deductible is an annual amount. Therefore, each year when your health insurance policy renews, so does the deductible.

Deductibles can be assigned per person, or there can be one total deductible amount for an entire family. The amounts can range from zero to more than $25,000 annually.

Not all the medical services that you pay for will apply toward your annual deductible. Services that normally do count toward the deductible amount are surgery, emergency room visits, and inpatient and outpatient services.

You should consider just how much you could reasonably pay out of pocket if you had a medical claim. You also must consider any other expenses you