It is possible to get a health insurance plan with no deductible. However, it usually comes with a trade-off.
In order for an insurer to make a profit, they will increase the monthly premium when there is little to no deductible. Typically, zero or low deductible plans come with higher premiums. The opposite is true for a high deductible plan.
What is a deductible?
The deductible is the base amount you must pay (during a given time period, for example, yearly) before your insurance carrier is going to step in. In other words, you must pay up to an amount (on the health expense) before the insurer contributes. If your deductible is $100 and the dentist checkup was $300, then you must pay for the first $100 of the $300, leaving $200 for insurance to cover. Keep in mind, there may also be co-insurance and co-pay terms built into your plan. These additional costs come into play after your deductible is met. Very few insurance carriers offer plans which cover 100% of medical costs.
How should I structure my plan?
Whether you should pick a low or high deductible plan depends on your lifestyle and well being. Those in good health may choose a high deductible to avoid expensive premiums.
How can I save more?
If you have an insurance plan with a high premium or deductible, you should consider turning these after-tax costs into before-tax expenses through a Health Spending Account (HSA).
Unsatisfied with your current insurance plan?
Although an HSA can be combined with insurance, many Canadian small business owners prefer only using an HSA. The two products offer the same solution but the HSA has one distinct advantage; it has no premiums, deductibles, co-insurance or co-pay.
Get an in-depthcomparison between an HSA and traditional health insurance.
For an owner / operator business with no arm's length employees, click below:
If you own a business with arm's length employee, check out this guide instead:
