5 Essential Tips for Choosing the Right Private Health Insurance: Protect Your Family and Save Money
Life is unpredictable, and medical emergencies can happen when you least expect them. Private health insurance offers a safety net, helping to protect you and your loved ones from the financial strain of unexpected medical expenses.
By covering part or all of your medical costs when you make a claim, private health insurance works hand-in-hand with the NHS to shorten waiting times and provide extra healthcare coverage. If you’re just beginning your journey into the world of health insurance, it’s essential to understand the benefits and how it can safeguard your family’s well-being.
Before you take the plunge and purchase a health insurance policy, it’s crucial to get familiar with the basics. To guide you, here are five key things to consider before buying health insurance:
1. Not All Health Insurance Policies Are the Same
When it comes to health insurance, there’s no such thing as a one-size-fits-all solution. The market offers a variety of policies, each designed to cater to different needs and budgets. Even within the same insurance provider, you’ll find multiple plans, each offering varying levels of coverage and benefits.
Policies typically range from basic coverage of which usually includes inpatient and day-patient treatment for unexpected acute conditions into more comprehensive plans that cover additional services like dental care, optical treatment, physiotherapy, and mental health support.
It’s important to carefully review what each policy covers to ensure it meets your healthcare needs. Remember, the level of coverage directly impacts your premium: basic policies tend to be more affordable, while comprehensive plans come with a higher price tag.
Many insurers also offer the flexibility to customize your policy by adding or removing certain benefits. This allows you to tailor your coverage to align with both your health needs and budget.
2. Health Insurance Doesn’t Cover Everything
Private health insurance is designed to cover unexpected, acute conditions from those that can be treated and cured within a short time. However, it’s important to note that most policies do not cover chronic conditions. Chronic conditions, such as high blood pressure, diabetes, epilepsy, arthritis, or Alzheimer’s disease, require ongoing, long-term care and typically have no known cure.
Additionally, health insurance usually excludes coverage for any pre-existing conditions of health issues that you had before your policy started. Depending on the underwriting method, you may be required to disclose any pre-existing conditions when applying for coverage. It’s essential to fully understand these exclusions so you can plan accordingly.
3. Your Policy’s Excess Can Affect Your Premium
When you make a claim, the excess is the portion of the cost that you agree to pay out of pocket. Depending on the insurer, this can be either optional or mandatory, and you’ll often have the option to choose your excess level.
Typically, the higher your excess, the lower your premium will be. This is because you’re taking on a greater share of the financial responsibility, making the policy less costly for the insurer. While a higher excess might seem appealing for reducing your premium, it’s crucial to ensure that you can afford this amount if you need to make a claim. Additionally, having a high excess might discourage you from claiming when you need medical attention.
4. Expect Your Premium to Increase at Renewal
Health insurance policies usually last for 12 months, after which you’ll need to renew your contract. However, don’t be surprised if your premium increases upon renewal. Several factors can contribute to this, including your claims history. If you’ve made claims during the year, your premium is likely to rise. Age is another factor for many insurers increase premiums as you enter a new age bracket.
Beyond personal factors, general inflation and medical inflation (the rising costs of treatments and medications due to medical advancements) also contribute to premium increases. It’s important to budget for these potential changes when planning your health insurance costs.
5. Health Insurance Brokers Offer Expert Advice at No Cost
Navigating the world of health insurance can be overwhelming, especially with so many options to choose from. This is where a health insurance broker can be incredibly valuable. A broker has access to a wide range of health insurance products and can compare prices and coverage to find the best match for your needs and budget.
If you’re new to health insurance, a broker can clarify complex terms, answer your questions, and provide personalized advice on coverage options and exclusions. They can also assist with the application process and even help you switch policies at renewal if needed. Best of all, their services are typically free of charge, ensuring you get the best value without added costs.
If you’re ready to explore your options or have any questions about health insurance, our expert advisers are here to help, free of charge.
