Caveat Emptor on medical insurance

Finally left full time employment and one of the most urgent task is to buy medical insurance coverage for my family. My old employer offers one of the best policies around and it is going to be costly to get something similar. But not having a medical insurance can also expose my savings, i.e. investment capital, to large fluctuations that can be costly and unpredictable. Needless to say, medical costs will likely escalate over time as well given an aging population that will demand more and higher quality care.

There are a few large international insurers that offer medical insurance such as IHI and Goodhealth. IHI turns out to be the best for me as I am seeking a credit-worthy insurer (A by S&P), guaranteed renewal and also pricing on a pooled basis even for elderlies. The downside is that the reimbursement for regular doctor visits and medical expenses both have a low cap. But this can be addressed by buying a high deductible IHI policy and supplemented by an additional policy to cover the lower amounts. And this is what i am likely going to do.

As I am going through the terms and pricing of the IHI plan, what struck me is the choices that a consumer is being offered. There are various options available for purchase but also varying deductible levels from US$0 to US$10,000. After crunching the numbers, it turns out that some of the deductible levels never make financial sense, i.e. they are always more expensive than another plan that is available. 0 deductible, which is what I guess most corporates would purchase, is never financially viable. But this obviously has never stopped people from buying it! Makes one wonder how many people actually analyze these insurance plans, and by extension, other personal financial products, in detail before making a choice!

I guess Caveat Emptor since if you don't watch out for yourself, no one will! And choices, as all of us know, do come at a cost!