Additional Deductible Options and Resulting Higher Discounts
Here are some additional deductible options. Before, the only options available were $0, $50 and $250. The price you see in the table is with the $50 deductible. If you chose a $0 deductible, you have to add 5% to the price shown in the table. In other words, higher price. If you chose a contract with a $250 deductible, you will receive a 10% discount, from the price shown in the table. Now, you can chose deductible of $1,000, $5,000, $10,000 and disappearing deductible (available only on $25,000 and %50,000 coverage). With a $1,000 deductible, you will receive a 20% discount, with $5,000 – 35% and 40% discount with a $10,000 deductible from the price shown.
Who may be interested in these amounts of own contribution?
$10,000 will definitely interest those applying for SuperVisa (10-year visa). For example, an insurance for 77 year old parents with the required coverage of $100,000 for one year, will cost $4,891 per person ($13.40 per day x 365 days). For two people that’s $9,292.90 ($4,891 x 2 = $9,782 less 5% discount). In order to process this invitation, we need to collect all documents and obtain visitor’s insurance ahead of time, pay over 9 thousand dollars and send it over to consulate. This is the standard procedure. But, there is an alternative way to go about this. We can start by paying $5,575.74, obtain the necessary confirmation of medical insurance, send it over to the consulate, receive SuperVisa and pay the remaining $3,717.16 only 1-2 weeks prior to arrival. What we are doing is processing the required insurance to obtain SuperVisa, but only at minimum, without coverage on existing conditions and with a $10,000 own contribution (deductible) instead of standard $50. This type of coverage will be practically half the price. When the visa is received and you know arrival dates, you can upgrade this coverage to a better one and pay the difference. This can only be done one, prior to your relatives’ arrival.
Another option: $1,000 deductible with the same example. In this case the company will offer you a 20% discount. The amount of discount would be $1,857.58. If you decide that you will be covering all the expenses not associated with a hospitalization, this may be interesting for you. As soon as hospitalization is involved, your bill will definitely be over $1,000, and everything, over that amount, will be covered by insurance. In this case you will cover doctor visits, observations, medications, emergency services, if there is no need to be hospitalized overnight. You decide what’s best for you – process insurance contract with a deductible of $1,000 and receive a discount of $1,857.58, or a standard deductible option.
Disappearing deductible – only available on coverage of $25,000 (30% discount) and $50,000 (25% discount) in case of illness. In case of an unfortunate event (trauma), there will be no deductible.
The disappearing deductible is processed in the amount of $2,500 and works in the following way: as expenses in case of a claim reach an amount of $2,500, the insurance company covers, in full, all necessary associated medical expenses without a deductible. Meaning you do not pay anything (deductible disappears). But you have to remember that there is a difference from other deductible options. All other deductible options work on a “per policy” basis, disappearing deductible works on a “per claim” basis.
Per Policy – a relative came to visit for a few months and you chose a $1,000 deductible (for example). If the first claim is for $800, if another claim occurs, you will only have to pay $200, and the rest is the responsibility of the insurance company.
Per Claim ($2,500 deductible) – means, that in one claim you had to pay $2,000, and there is another claim, you previous expenses are not accounted for and you are again responsible for paying a $2,500 deductible.
Let’s look at an example with a $2,500 disappearing deductible. A 77 year old relative is visiting for 6 months. A full coverage with a standard $50 deductible will cost $1,810. The company offers you a 30% discount on a $50,000 coverage. The discount amount is $543. So you pay $1267 with the following assumptions:
- In case of a trauma, this policy provides coverage with no deductible.
- An elderly person can take care of minor issues on their own, as they are well aware of their illnesses and has all the necessary medication to maintain an ongoing chronic condition.
- Often, even our parents, refuse to go to a doctor, to avoid spending our money. But, if something serious occurs, there are no other options, you have to go and if there is at least 1 night stay, the bill will immediately be over $2,500, as the hospitalization is usually between $2,300 and $4,000, not including necessary operations.
You decide, what is more beneficial to you – to process an insurance contract with a disappearing deductible of $2,500 in case of illness (trauma is covered without deductible) and receive a discount of $532, or a standard deductible option.