CATEGORY
CLOSE
 

Raise your deductible for lower premiums

Submitted by a LOZO expert
mail
      no votes yet
VOTE!

VOTE!

Did you know...?
Add this page to a special LOZO bookmarks section for easy one-click access. Login to save these bookmarks to your LOZO account to access from anywhere, otherwise they will be saved on this computer only.
Login now
Save on this computer
If you have the option of choosing a higher deductible with your health insurance plan, you can lock in savings on your premiums. The downside of course is that you may have to pay more out-of-pocket if you use more medical services over the course of the year. Consider this hypothetical example: if raising your deductible from $500 to $1,000 saves you $30 every month, then you are locking in a savings of $360 for the year ($30/month x 12). If you never were going to hit the $500 deductible anyway then the $360 is all savings in your pocket. However if you hit the full $1,000 deductible then you end up having paid more. One way to soften the blow is with a Health Savings Account (HSA) where you put dollars away tax free to pay for qualified expenses. In this case the $1,000 deductible could come out of the HSA and yield you the tax savings.

A LOZO expert posted this tip.

RELATED LINKS:

User Comments