Hassle-Free Health Coverage: Chapter 12 Deductibles

As with other types of insurance, the higher your deductible, the lower your premium.

For most people, a deductible in the $100 to $250 range is the most manageable. But compare other deductibles, too. If your family has been healthy for a number of years, you may want to switch to a deductible of $500 or $1,000. You'll notice a sizable reduction in premiums.

Save money on premiums, if necessary, by taking larger deductibles and covering smaller costs yourself.

Most policies have an out-of-pocket maximum -- when your covered expenses reach a specified limit in a given policy year, a reasonable fee for the benefits that are covered under your plan will be paid in full by your insurer and you no longer have to pay the co-insurance. But, if your doctor bills you more than the reasonable and customary charge, you may still be required to pay some of the costs.

Most policies have lifetime limits, too. It's smart to look for a plan with a lifetime limit of at least $1 million. If it's lower than this, you could run through coverage if you ended up having major health problems for several years.