When shopping for health insurance, you may not have many choices regarding the extent of your healthcare coverage. Unlike auto or homeowners insurance, you typically don’t choose limits on your health insurance policy. Rather, you’ll choose from plans ranging in deductible and premium prices. Generally speaking, the higher the plan’s premium, the lower the plan’s deductible. This means that while you’ll pay more each month for coverage, your out-of-pocket responsibilities under that plan tend to be lower than plans with higher deductibles.
You’ll want to evaluate your current health status and expenditures and also look at your finances to determine how prepared you’d be for an unexpected health expense. Then you can weigh whether it’s more practical to pay more each month for more coverage versus paying less each month but risking higher out-of-pocket costs in the event of an illness or injury.