What is the National Health Service?

If you become ill suddenly or have an accident, your GP or the accident and emergency department of your local National Health Service (NHS) hospital is the place to go.

The NHS was created in 1948 to provide free essential health care for everyone living in the UK, regardless of age, occupation, or your ability to pay. It's funded by British taxpayers, and is managed by the Department of Health.

But it has limited resources, which means that non-emergency treatment can often slip down the list.

So why do I need private health insurance?

Many people take out private health policies if they want to avoid the long delays often associated with NHS treatment. The average wait for an outpatient appointment with the NHS in England is currently four weeks. Other reasons for opting for private medical insurance (PMI) is to have a choice of hospitals and possibly cleaner and more comfortable surroundings.

Despite the NHS, many people take out insurance to gain access to private treatment and specialists either individually or through their company. Private medical insurance also gives you the opportunity to get a second opinion if you’re unsure of advice given to you by your GP.

Since the 1950s, the number of people with private health insurance has roughly doubled every ten years. Almost one in eight of the UK population has some form of private medical insurance (PMI). Over 2.5 million people are thought to have private health care plans provided by their employers.

Are any conditions excluded?

Unfortunately, most private health insurance policies include a list of illnesses and conditions that they automatically will not cover. You should therefore ensure you read the small print of any health insurance policy before you take it out.

PMI also won't pay for pregnancy, infertility, prescriptions, dentistry, AIDS, chronic diseases such as asthma or diabetes, cosmetic surgery and the effects of drug and alcohol abuse.

 Any illness suffered prior to taking out a policy is known as a pre-existing condition. Insurers usually exclude pre-existing conditions either permanently or for a set period after the policy starts.