Excess in a medical insurance plan is the amount of money you pay if you make an insurance claim. How do you decide what excess is right for your medical plan? You might think it makes logical sense to go for the lowest excess possible, but the excess amount and the policy premiums work together. If you go for a low excess policy you can expect your premiums to be high. However, if you increase the excess of your worldwide health insurance plan, you can lower the premiums you pay monthly.
What Excess Is Right For Your Medical Plan?
Determining the right excess for your medical plan is all about finding the right balance. One mistake a lot of people make is increasing the excess amount too much. They, of course, do this so that they can lower the premium rate to the bare minimum. However, trouble arises when they fall ill and realize that they cannot afford the excess amount. You need to sit down and assess your finances. How much can you comfortably afford to pay per month? How much can you afford in a one-off payment if something was to go wrong? The whole point of taking out an international medical insurance plan is to provide yourself with financial protection. The last thing you want to do is put yourself in an even trickier predicament.
Additionally, consider how likely it is that you are going to require medical treatment. Of course, there are no guarantees in life, which is why all people need some form of cover. Nevertheless, some individuals are more of a risk than others. Do you have a history of illness in your family? Do you have any pre-existing conditions? How many times have you been to the hospital in the past five years? By assessing these factors, you can determine whether it is going to be cheaper for you to go for a high excess plan or not.
Let’s explain this in further detail:
• If you deem yourself less likely to require medical treatment, you are probably best off raising your excess slightly. As you can lower your premiums, you can reduce the cost of your global health insurance plan overall. As you are less risk, there is a smaller chance of being in a position requiring you to pay the excess.
• If you are more likely to require medical treatment, you should consider sticking with a low excess plan. As you are at higher risk, you are more likely to find yourself facing medical bills. Medical bills mean that you will need to pay the excess amount. In that case, it can work out a lot cheaper to lower the excess sum instead of your premium rates.
Keep In Mind
It is vital to stress that there are no guarantees, and calculating your probability of needing medical treatment and dental services should only result in small fluctuations in terms of excess amount. Just because you are fit and healthy does not mean you should put your excess amount up to an extremely high sum. Making sure you can afford both the excess and the premium amount should always be your first concern. Establish a cost range for both if this helps. You can use the other factors in this post to determine the best premium and excess amount while ensuring it is within the range you determined.
The last thing you want to do is increase your policy premiums to such a high level that they essentially make your entire global health insurance plan void. No one wants to experience this, especially when they are unwell. So, carefully assess this aspect before taking out a policy. If you already have an international medical insurance plan, now is the time to assess your excess amount. If you don’t feel confident with what you have in place, give your insurer a call to discuss your options
Deciding What Excess Is Right For Your Medical Plan?
When figuring out what excess is right for your medical plan, consider the factors discussed here. You don’t want to pay more than you can afford each month, but you shouldn’t set yourself up for financial disaster if an illness arises.
