February 15, 2010
Is it possible to save $ on health insurance like this?
blueticker15 asked:
Buy 3 policies with increasing limits of liability: $2k-$10k,
$10k-$50k, $50k – $1mil. The 2nd & 3rd policies have no liability/exposure until the preceeding policies have been maxed out, and should be cheap to buy. The 1st policy should be cheap also, with only a $10k maximum liability.Make sense?
Buy 3 policies with increasing limits of liability: $2k-$10k,
$10k-$50k, $50k – $1mil. The 2nd & 3rd policies have no liability/exposure until the preceeding policies have been maxed out, and should be cheap to buy. The 1st policy should be cheap also, with only a $10k maximum liability.Make sense?
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Comments on Is it possible to save $ on health insurance like this?
Problem is health insurance policies are not sold that way. There is no health insurance policy that has an annual maximum benefit of $10,000.
With the exception of one time policies like travel insurance or short term policies most health insurance policies don't have maximum annual benefits. The maximum is expressed as the lifetime maximum, usually $1,000,000 to $5,000,000 depending upon the company and plan.
For the sake of argument even if you could purchase policies as you describe I don't see where splitting the risk into 3 levels reduces the total cost. The 3 policies would probably exceed the cost of a single policy because you have the expenses of administration, underwriting and policy issuance times 3 and that's before any of the companies factor in potential losses.