Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
The deductible is just the amount you the insured are responsible to pay out of pocket. The actual insurance works the same assuming all things are equal on policy type. So for example one person may have a $1,000 deductible and another may have a $10,000 deductible. Let's say both parties have medical bills that equal $50,000. Assuming there is no co-pay the first party will pay their $1,000 deductible and the insurance company will be $49,000 and the second party will pay their $10,000 deductible and the insurance company will pay $40,000.
However the party with the $1,000 deductible will pay a higher monthly premium for the insurance due to carrying a lower deductible so you need to do the math and evaluate what you can handle. Many people will carry the higher deductible to carry a lower premium assuming they are in good health and will pay out of pocket for the small stuff. However if something catastrophic occurs their worst case is $10,000.
.JPG){kind=avatar}
However the party with the $1,000 deductible will pay a higher monthly premium for the insurance due to carrying a lower deductible so you need to do the math and evaluate what you can handle. Many people will carry the higher deductible to carry a lower premium assuming they are in good health and will pay out of pocket for the small stuff. However if something catastrophic occurs their worst case is $10,000.