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Health Insurance > Types > Hospital Cash Plan
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Hospital cash plans
Hospital cash plans are an increasingly popular form of health insurance. They are much cheaper than traditional private medical insurance plans, and can offer more flexibility.
The market is competitive, with various specialist and major health insurance companies offering a range of different products.
The benefits and limitations of your hospital cash plan will depend on the cost and provider - and it's important to do your homework and research what’s available before you buy.
What is a hospital cash plan?
A hospital cash plan pays a cash lump sum when you need to visit a range of medical practitioners such as opticians, dentists or osteopaths.
It will also pay out a small cash sum for every day you need treatment as an in-patient or day patient, either in an NHS or private hospital. Some also offer European cover. The money paid out is tax-free.
Hospital cash plans are often marketed as family products as opposed to individual ones. However, bear in mind that children receive a lot of free medical care on the NHS, and are therefore unlikely to need cover for many aspects of healthcare covered by hospital cash plans.
So - you need to weigh up what you can actually claim for if you have to pay extra to cover children.
Cash plans are simple, useful products that don’t cost the world. But it is important you recognise what they are for and their benefits and exclusions.
How much do hospital cash plans cost?
Hospital cash plans vary in price depending on the level of cover they offer. They can cost as little as £5 a month for a basic plan.
The higher paying plans can charge £35 a month or more, which could be the same as a basic private medical insurance plan, so make sure you research both.
Should I choose a hospital cash plan if I can’t afford private medical insurance?
Each type of plan fulfils a different need, so everyone’s situation will be different.
Cash plans offer flexibility and pay for regular treatments such as dental and optical appointments. However, they will not cover the full cost of treatment in a private hospital.
Which is best depends on whether you want help with everyday costs and are happy to use the NHS for more serious conditions, or would rather fund the everyday costs but have the more serious one treated in a private hospital.
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