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Travel Insurance Deductible : Understanding What is a Deductible and How Does It Affect Travel Insurance Cost

Travel Insurance Deductible Video

Travel Insurance Deductible

Understanding What is a Deductible and How Does It Affect Travel Insurance Cost

Understanding What is a Deductible and How Does It Affect Travel Insurance Cost

The video will help you understand the term “Deductible”, Why is Deductible so important and how does deductible affect your travel insurance cost or premium? It will also show case how much Deductible should you select while buying a travel medical insurance.

Deductible is the amount of money you are responsible for, before the insurance company starts paying for any covered expenses.
There are two types of deductible
1) Deductible per incident
2) Annual Deductible or Deductible per policy period

It is important to pay attention to what deductible to choose while buying a travel medical insurance as higher the Deductible, lower the insurance cost (Premium) and visa-verse. If you would like to keep your out-of-pocket expenses low, you may want to buy a travel medical insurance policy with low deductible.

Video Transcript:
What is a deductible and why is it so important? A deductible is the amount of money you are responsible for paying before the insurance company starts paying for any covered expenses. Your responsibility does not mean that you have to pay in cash or upfront but it will be adjusted in your claims and you will ultimately be responsible to settle it accordingly. How deductible affects your insurance costs? It is important to pay attention to what deductible you choose at the time of purchasing the insurance policy as higher the deductible lower the premium or insurance costs and vice versa. Depending on what kind of policy you are buying you should pick up the deductible accordingly. To keep your out-of-pocket expenses less you may want to pick a lower deductible. What is a deductible per incident? Insurance policies where the deductible is applicable per incident you will be required to satisfy the deductible for each incident. Let’s look at an example. Let’s say you fall ill and need to visit the doctor. The doctor may ask you to get an x-ray, a blood test, and prescribe you some medications. All of these things are related to your one illness so therefore considered one incident and hence deductible will be applicable only one time for all medical bills pertaining to this incident. For any new and future medical situations, deductible will be applicable again. What deductible to choose for a policy with a deductible per incident. Since the deductible is per incident it’s a good idea to consider selecting the lowest deductible. What is an annual deductible or deductible per policy period and why is it important? Insurance policy where deductible is paid annually or per policy period a deductible is applicable only once per year. Let’s say you purchase a plan with a two hundred and fifty dollar deductible and incurred total of fifteen hundred dollars in expenses. The insurance company will begin to reimburse expenses as per the policy minus the deductible on the policy. For these types of policies you only need to pay the deductible once per year no matter how many medical services you have used during the year. What deductible should you choose from where the deductible is annual or per policy period? To keep the insurance price low, choose a high deductible, to keep your liability or out-of-pocket limit low, choose a low deductible. The choice also depends on your comfort level. Choose the right deductible based on what amount you could be ready to pay as deductible should you use the insurance.

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