A low deductible insurance plan is a type of health insurance plan that requires the policyholder to pay a lower amount of money out-of-pocket before the insurance company starts to cover the costs of medical care. Deductibles are typically expressed as a dollar amount, and they can vary widely from plan to plan. For example, a plan with a $500 deductible would require the policyholder to pay the first $500 of eligible medical expenses before the insurance company would begin to cover the costs.

Low deductible insurance plans can be a good option for people who expect to have high medical expenses in the near future. They can also be a good option for people who are concerned about the financial risk of having to pay for unexpected medical expenses. However, low deductible insurance plans typically have higher monthly premiums than plans with higher deductibles.

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Co-insurance vs. deductible are two important terms to understand when it comes to health insurance. Co-insurance is the percentage of the cost of a covered medical service that you are responsible for paying after you have met your deductible. Deductible is the amount of money you have to pay out-of-pocket before your health insurance starts to cover the costs of your medical care.

For example, if you have a health insurance plan with a $1,000 deductible and a 20% coinsurance rate, you would be responsible for paying the first $1,000 of your medical expenses. After you have met your deductible, you would be responsible for paying 20% of the cost of any additional medical services you receive.

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