What is typically true about an insurance policy with a high deductible?

An insurance policy with a high deductible is typically associated with lower overall costs for the insured, particularly when it comes to premium payments. This structure means that while the individual may have to pay more out-of-pocket before the insurance kicks in, the monthly premiums tend to be significantly lower. This can be advantageous for individuals who do not anticipate needing significant medical care throughout the year, as they are able to save on monthly costs despite the responsibility of a higher deductible.

Policies with high deductibles are designed to encourage insured individuals to take on more cost before their insurance benefits start, which can lead to lower premiums in exchange for greater out-of-pocket risks. This arrangement is particularly appealing to those who are healthy or who are looking for a way to save on their insurance costs while recognizing they may pay more upfront for medical services when needed.