More and more insured are asking for a high deductible when they purchase insurance, but “high” generally means $1000. It is true that the $1000 deductible is the most cost- effective. Just compare the following annual rates for a male between 35-39 on a good global plan: $250d = $1322; $500d = $1175; $1000d = $909; $2500d = $805; $5000d = $658; $10,000d = $517.
If a person goes from a $250d to $1000d, he can save $413 a year. If he does not have any major medical costs in two years, he will save $826, which is nearly enough to pay the $1000 deductible his third year on the plan. During my career overseas I was in the hospital one time in 30 years with Hepatitis. Thus with a deductible of $1000, I would have saved $12,390 over those 30 years. Similar savings would also be available for other members of the family.
You will notice, however, when you jump from a $1000d to a $2500d, the savings are minimal–only $104 a year–even though you are adding $1500 to the deductible. So the most cost-effective deductible at the present time is the $1000 deductible.
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