Why is it smart to always purchase the premium insurance package?

The most important step in finding health insurance is to determine exactly what you need in terms of coverage and what you can afford. If you buy more coverage than you need, you'll spend more than you need to. And as to knowing what you can afford, you can't spend money that you don't have.

Package insurance is always preferable to the insurance company as it is increases the underwriting portfolio and hence the premium written , consequently the insurance company allow the insured a discount in the rate of premium , that is to say the package insurance selling is much like the wholesale in regard to the consumer goods .

Regards   

I assume you talking about premium [basic] package and extended package, basic package covers general practitioners and specialists, hospital care, medicines, basic dental care.

Extended or extensive package may cover additions like dentures, physio, psychology, glasses etc ,it is not about being SMART; it is about what you WANT.