Selecting a short term health insurance depends on the deductibles and the coinsurance you choose. In most plans, you can vary your insurance premium by selecting appropriate deductibles and coinsurance amounts.
The deductible decides the amount of premium that you will be paying for the insurance. The premium also depends on the coinsurance, or the amount that you will have to pay for the first $10,000 (or the plan’s coinsurance maximum) in covered charges. If you want to pay a lower premium, this would mean that the initial amount (coinsurance) that you pay before insurance benefits kick in will be higher. A higher premium ensures that the amount that you will pay as your initial contribution (coinsurance) if you get sick will be lower.
For example, let’s say you are a 33 year old, and have a short term insurance plan. You need $15,000 for medical treatment. If you choose $1,000 deductible with an 80-20 percent coinsurance, then you would have to pay $3,000 while the insurance would contribute $12,000. With this particular plan, you will be paying a premium of $86.57.
However, if you chose a $2,500 deductible with 80-20 percent coinsurance, then you will have to pay $4,500 for the same treatment of $15,000 and the insurance would pay the rest. You will be paying a premium of $67.33.
