Health insurance Guide

HealthInsurance Quote Line

0800 107 9246

• Home
• Mortgages
• Credit Cards
• Loans
• Investments
• Life Insurance
• Home Insurance

Health insurance guide

The average wait for an outpatient appointment with the National Health Service in England is nearly seven weeks. Many people instead opt to take out a private health insurance policy, which will cover the cost of private medical treatment in the case of curable or short-term medical conditions. Health insurance provides the policyholder with the guarantee that treatment will be available as soon as they fall ill or injure themselves. The Association of British insurers say that: “Most people buy this type of insurance to gain the reassurance of knowing that treatment is available promptly, if they become ill or are injured.”

Private health insurance should not be regarded as an alternative to the National Health Service (private hospitals are generally not equipped for casualty situations), but it will ensure that you get care more quickly, at a time and place that suit your needs. Private health insurance opens up a range of healthcare options.

Taking out a health insurance policy is a good idea because it can ease some of the common concerns experienced by people who become ill. For instance, there is no need to wait for a long time to find out what is wrong, and patients will go straight onto a waiting list for surgery should it be required.

How much will health insurance cost?

The cost of a health insurance plan depends on what insurer you choose, which plan you decide to take out, and whether the policy is for an individual or a family. The more comprehensive the cover is, the more expensive the policy will be. If you would like to be treated at the top private hospitals, the policy will also be more expensive.

There are numerous ways to keep the costs lower, but all of them involve sacrificing some level of cover or benefit. For instance, you could build the ability to pay larger portions of claims into your plan, or agree to attend a smaller choice of hospitals.

Many insurers now offer no-claims benefits, some of which could help reduce the yearly increase in your premium.

Often, companies will offer private medical insurance as a perk, benefiting both employee and employer. However, if you earn above a certain threshold, private medical insurance as a perk is taxed. If you include medical insurance as part of your job, you may have to renegotiate your policy when you retire. People over 60 no longer get tax relief on private medical insurance.

Click Here

to Compare Best Selling Health and Dental Insurance

 

Should I send my medical history to my insurer?

Some policies may require you to reveal part of your medical history before providing you with a quote. You may also be asked to give details of your GP, who the insurer could then contact for further information.

 

It is essential when filling out any forms from your insurer to be as detailed and accurate as possible. Should you suffer from a medical condition, it is important to bring it to the attention of your insurer. They will probably still take you on, but will write a special exclusion for that condition into your policy.

How does making a claim on health insurance work?

Firstly, it is important to establish what is wrong with you, and whether you need a private consultation. It is important to obtain a quote in advance, before treatment starts, and make sure that your insurer will be willing to pay the costs. Some insurers will prefer to settle their bills with the hospital, as opposed to you making payments and claiming the money back from them.

When is health insurance necessary?

When deciding whether or not to take out health insurance, it is worth remembering that in all cases health insurance does become more expensive as one gets older. In some cases, insurers will consider accepting new customers at any age, whereas others will impose an age limit. The association of British insurers state that “as people get older they are more likely to need and receive medical treatment, which means that private medical insurance premiums will usually increase with age to reflect this.”

Many younger people do not consider health insurance a priority, particularly when loan repayments and saving for a mortgage deposit are a concern. However, taking out health insurance should not be left to the last minute.

Should you decide to get married, many insurers offer a married couples plan. Furthermore, if you decide to have children and you can possibly insure as a family, this is a good idea. That way, your children’s health is safeguarded and should you suffer illness on injury you will be back in a care-giving position as soon as possible.

If you are offered a position abroad, or find yourself in any situation where you will be leaving the UK for an extended stay, it is essential to consider a specific health insurance policy for the duration of your trip.

What type of health insurance is best?

When selecting your health insurance policy, it is necessary to carefully consider your options. In the UK, a variety of insurers offer a range of health insurance products. It is worthwhile investigating the hospitals included in your policy, and how they have been selected. Furthermore, it is a good idea to select the company and product that best suits your requirements, not to mention your budget.

 

There are ways in which to reduce your premium, such as choosing to pay an excess charge. You could also take out cover that only pays for hospital stays and treatment, reducing the cost even further. It is always worth ensuring that inpatient treatment is completely covered by your insurer.

For general plans provided by most insurers, a number of medical conditions will preclude you from being able to take out Private Medical Insurance (see exclusions below.)

When choosing your health insurance policy, you will also have to decide how to pay for it. In most cases, subscriptions for health insurance will increase on a yearly basis. Some insurers offer fixed price options, whereby you can take out cover with fixed payments over a set period.

What different types of health insurance exist in the UK, what do they include and who do they suit best?

Health insurance in the United Kingdom is available under a number of different plans. The different types are detailed below.

Private Medical Insurance

Private medical insurance will provide funds for your consultations, your tests and operations you need. You will have the benefits of a private room and no waiting lists. Furthermore, you should be able to choose where you would like to be treated and when.

Usually PMI plans are taken out as a yearly contract with various different payment options. You can generally reduce your premiums by making sure you have an excess limit in place. This means that you will be eligible to pay the first £100 or thereabouts of any claim that you make.

You can take out PMI as an individual, a married or unmarried couple, a single parent or a family. The premium that you pay tends to increase on a yearly basis due to medical inflation. Payments will also increase with age.

Critical Illness

Critical Illness insurance covers patients who are suddenly diagnosed with a severe illness. They generally pay a tax-free lump sum of money that can then be used by the patient according to his or her wishes. This money can be used for almost anything, including debt repayment and leisure.

Income Protection

Income protection insurance is particularly important for self-employed people. In the United Kingdom, should you become incapacitated and unable to work, you will only receive £60.20 per week. If you have income protection insurance, the plan will pay for up to 65 per cent of your gross income should you find yourself unable to work due to accident or sickness.

The premium for this type of insurance will be calculated depending on the type of work that you do, and also how quickly you want benefits to pay. Benefit payments are terminated when you are fit enough to return to work, or can continue (index-linked) until your retirement age.

The Health Trust Fund

This is a more recent package designed to replace the traditional health insurance scheme. This type of plan takes advantage of trust fund laws in the UK that permit low cost cover, comprehensive access to medical facilities, no excess payments, no automatic premium increases and no age loading.

The Financial Services Authority does not regulate health trust funds at this stage.

Cash Plans

Cash Plans are low-cost health insurance plans that are in place to provide cash for the policyholder’s medical expenses. These could include dental, optical or nursing benefits. Cash Plans are available for both individuals and families.

Ex-pat insurance

Ex-pat insurance is self-explanatory- it is aimed at anyone working or living abroad for an extended period of time. This type of plan is generally paid annually in advance, and cover can be reduced depending on budget.

Travel Insurance

Travel Insurance is also available for people going on short trips or for extended stays. It is essential to have travel insurance cover in these instances in case you suffer from a medical emergency.

Pre-Existing Conditions and exclusions

Exclusions refer to conditions under which insurers will refuse to provide cover. Unfortunately, some exclusions do exist in health insurance. These can include chronic, recurrent or long-term conditions or diseases, pregnancy, infertility or sterility, cosmetic surgery, experimental treatments, and treatment in other countries.

Other long-term illnesses such as asthma or multiple sclerosis are generally not covered.

Pre-existing conditions refer to a medical condition that has been diagnosed or treated prior to joining a new health insurance plan. Generally, the insurer will exclude cover for any condition (or further complication related to it) that has existed in the last five years. Some insurers will make conditions eligible for cover when you are shown to be completely clear of the condition after your insurance policy starts. Recurrent diseases that are incurable are always likely to be excluded.

Often, insurers will refuse to pay for treatment of long-term illnesses. There is no way to take out a plan for an operation you know that you will need, for instance.

Furthermore, policies will usually refuse to pay the costs incurred in treating some specific conditions. These can include alcoholism or drug abuse, dental problems (although dental insurance is available), infertility, pregnancy, cosmetic surgery or HIV/AIDS.

The Association of British Insurers include the following in their list of usually not included: ‘Drug abuse, self-inflicted injuries, out-patient drugs and dressings, HIV/AIDS, infertility, normal pregnancy, cosmetic surgery, gender reassignment (also known as sex change), preventive treatment, kidney dialysis, mobility aids, experimental treatment, experimental drugs, organ transplant, war risks, injuries arising from dangerous hobbies (often called ‘hazardous pursuits’).’

A law called the Health Insurance Portability and Accountability Act means that pre-existing conditions will be covered providing that you have been insured for twelve months previously, should you join a group plan through your employer.