National Society

In the UK, people have the benefit of a healthcare system paid for by general taxation, but for a number of people a health insurance plan is a good way to stay prepared for unforeseen injuries and illnesses.

Health cover ensures that patients can get fast access to the treatment they need.  They can also bypass extensive waiting lists and also gain access to more expensive forms of treatment if they wish. Health insurance is especially important for people with busy lives who cannot afford to take much time off, and for those who are moving into retirement age. For people who simply do not wish to be inconvenienced any more than necessary by illnesses or injury, health insurance is an essential investment.

Health insurance is similar to other types of insurance in that many types are available, and each potential customer is well advised to research the deal that is best for them. The type of health insurance will vary based upon the customer’s individual medical history, as well as other relevant factors, such as any family history of particular diseases such as cancer, or heart disease (which are the two most common killers in western countries). Age is another factor in negotiating health cover – older customers should expect to pay a higher rate for equivalent cover than younger customers. The chance of an older customer having to use their health insurance policy is that much higher, so the insurance cover is more expensive.

Since we have a comprehensive healthcare system that is free at point of entry (though it is paid for by everyone through taxes), many would argue that separate private health insurance is unnecessary. However, good health makes life much more enjoyable, and while the NHS does an excellent job, it cannot completely cater to the individual needs of every person. Health insurance helps to increase the overall quality of life for many and is a great finishing touch to a healthy lifestyle, or a valuable asset for those with recurring issues.

When taking out a health insurance policy an applicant’s health status will be taken into consideration, as well as their pre-disposition to certain illnesses, depending on lifestyle or family medical history. If the underwriters decide that it is too risky to insure for certain illnesses, they will impose exclusions on the policy. Most companies will decline to cover any expenses incurred in connection with pre-existing medical conditions.

More expensive policies usually include treatment for chronic illnesses such as cancer. Alternatively, cover can be taken out so that upon diagnosis of a chronic or terminal illness, a lump sum will be paid out to the patient or their family.

A health insurance policy may impose waiting periods on certain conditions before a claim can be made. An example of a condition with an imposed waiting period is maternity cover where an expectant mother is not covered unless she gives birth a certain number of months after taking out the insurance.

There are health insurance policies that offer additional features such as overseas cover, which makes provision for sickness or accident costs incurred abroad, as well as any repatriation or air ambulance expenses incurred during a medical emergency. Income protection is another supplementary item on certain policies, and covers the insured should an illness or injury cause them to be out of work for a length of time.

Incentives are offered by insurance companies to encourage new customers and many policies will include a newborn baby on a family policy, for no extra charge, until the following renewal date.

Many people travel abroad each year and the increased availability of cheap international flights has made more destinations popular than ever before.  This means that tourism to developing nations has increased, resulting in holidaymakers spending weeks in places where hygiene and medical facilities may not be as developed as those back home.  This makes travel health insurance an important consideration for any trip, and private health insurance can be particularly beneficial.

It is very important to check what is covered by travel health insurance and what is not.  This should be done beforehand, rather than a traveller leaving it until they are sick in a foreign country to know what assistance is available to them.

It is important to find out what kind of assistance will be offered and whether the insurance covers call-out charges for doctors and whether hospital treatment is covered.  It may also be the case that you are compensated for your medical treatment once you have paid for it and you should know the details of this arrangement before you travel.

Prevention is always better than cure: one common group of sicknesses that can be contracted abroad can result from the fact that UK travellers may have no immunity to viruses and infections they have not experienced before.  Whilst a native in a country may have built up immunity, a tourist would not.  Vaccinations are very important when travelling abroad, particularly to developing nations where conditions such as hepatitis and malaria will be more common.

There are countless different health insurance products and providers on the market, and it is important to consider factors other than just cost when selecting one.  It is prudent to consider all of the following factors when committing to health insurance:

Coverage

First of all, a potential health insurance policyholder should make a list of all the items they would like to be covered.  For example, consider whether you wish the policy to cover eye care, prescriptions, maternity care, and family planning.  Ensure that you thoroughly consider all situations that could arise. 

Choice of Healthcare Professionals

It is also worth bearing in mind that some insurance providers will require the policyholder to seek medical treatment from one of their recommended doctors, so if you would prefer the option of choosing your own doctor to carry out the treatment, you must ensure that the policy you choose covers this.

Price

Finally, it is important to consider monthly premiums and excesses.  Often employers offer their employees the opportunity to take out health insurance through the company, which usually works out to be more cost effective than taking out an individual policy.  Some employers may ‘match’ the employee’s contributions, so that anything the employee contributes is also contributed by the employer.  If your employer does not offer this benefit, it is a good idea to use a price comparison website to search for the best deals, although you must thoroughly compare the coverage of all policies to ensure that they are equivalent. 

Health insurance is designed to provide funds to cover or at least contribute toward, the cost of treatment, hospitalisation or a combination of both, for a specific set of medical conditions. The most common form of health insurance is termed Private Medical Insurance. These policies generally provide cover for acute health problems, in other words conditions that will improve with treatment and allow the insured to resume a normal, healthy life.

Private health insurance is not funded in any way by the National Health Service (NHS) and does not affect your right to seek NHS treatment for any condition or injury. The NHS has a duty to provide care and treatment to any person, regardless of their age or health status. Private health insurance policies have specific criteria that must be met before a potential client will be accepted. People with pre-existing, long term or chronic medical conditions, such as AIDS, alcohol or drug dependence or other some types of health problem, are often unable to purchase health insurance.

When taking out a health insurance policy, the policyholder pays a monthly, quarterly or annual fee for the cover provided; this is known as the insurance premium. The majority of insurers provide cover for a period of one year at a time and renew it annually. 

Health insurance policies not only provide access to health services when you need them, but also offer the reassurance that should you fall ill, your treatment will be expedient and responsive to your needs, potentially sidelining you for a much shorter period of time than might be the case should you have to wait for NHS treatment.

When making an application for a private health insurance policy it is crucial that you provide honest and accurate details of your medical and lifestyle history, in order to ensure that your policy will be valid, if and when, you need to use it. Insurers will have to understand fully both how you treat your health and if there are specific activities or jobs that you do that might impact upon your health status. If insurers consider that your lifestyle might result in regular claims or potentially lead to an extensive claim due to an unhealthy lifestyle, your premium might well be increased.

If you are a smoker your premium will inevitably be higher. There are many diseases and conditions that are directly attributed to the habit and if you have not declared that you smoke and subsequently require health provision for a related condition, your insurance would be invalid. The same situation applies for those using recreational drugs.

Most people consume alcohol on a social basis, though for some it can become problematic and may adversely affect their health. Insurance companies will require accurate details of your intake in order to assess your premium. Again, many illnesses are associated with excessive alcohol consumption and your insurance provider will have to be aware of the risk of you suffering from illnesses resulting from heavy drinking.

Having a lifestyle that involves risks is also a factor insurers will consider. Dangerous sports and hobbies are likely to attract a higher premium, as there may be an increased risk of injury. 

When it comes to buying private health cover, many UK residents may not believe they need anything more than the National Health Service already offers, but private health cover is a great way to supplement and support treatment and care offered under the NHS.

A private health insurance plan allows patients to get quicker treatment than might be available through the NHS and provides a wider choice of health care services.

Choosing the Best Coverage for You

So, how do you know which health cover plan is the right choice for you? If you are offered a health cover plan from your employer, it is best to examine the cover in detail and find out exactly what is included. Remember, not all corporate policies provide the same cover and benefits.

When considering a private health cover plan, here are some important issues to think about:

•    Budget – It is important that you opt for a plan with a monthly premium you can afford. Missed payments mean no health coverage.
•    Who is covered? – Think about what you want your health insurance to include. Do you need to just cover yourself or your whole family? The more people covered on the plan, the more it will cost. 
•    What is covered? – There are many companies providing health insurance and the cover can vary in benefits and pricing, so it pays to shop around and select the policy that best meets your needs and your budget.

Many people consider health insurance a necessity to their daily lives because of what it can provide.  For many, it provides peace of mind that care will be provided if illness occurs.  For others, it can mean speedy access to facilities, or even access to treatment that would otherwise be unavailable to them.  Health insurance is often included as part of a remuneration package offered by employers as it is often more operationally and financially viable to have sick members of staff back on their feet as soon as possible.

Important benefits of healthcare insurance can include access to private treatment facilities that are usually of a higher quality and cleanliness than state provisions.  Very often, the policy will include priority access to specialists, and may include access to in-demand specialists within the state system who will often have a range of private and state clients.  Other benefits of healthcare insurance may include a straight-forward claims service that aims to be as simple as possible – this is in place because insurance companies know that clients do not want to deal with complicated paperwork and claim systems whilst they are unwell. 

Another popular feature of health insurance is specific cover, or a policy with enhanced coverage for specific conditions such as cancer, heart disease or other conditions that may elicit specific concerns and necessitate first-class treatment.  Such specific insurance policies may result in increased premiums for individuals with a history of these pervasive conditions.

It is not uncommon for employees to have to travel abroad on business or to work abroad for extended periods.  Employees may be expected to work outside the EU and so will need international health insurance to make sure they get any medical treatment they need.

When businesses send their staff abroad for work, they should bear the cost of all aspects of the move.  These costs may vary depending on what the arrangements are, whether the employee has to live abroad, or just spend long periods of time away.  In either situation, international health insurance will make sure that all costs of healthcare are covered.  Some international health insurance policies will even cover things like the vaccinations that the employee may need before travelling abroad, as well as making sure that employees are not faced with a large, unexpected medical bill.

Some employers may add coverage for employees when they travel abroad as part of their benefits package.  International health insurance can be an advantage for employees in other ways as well.  Their families might be covered when abroad on holiday or the insurance may continue after retirement, which will be useful for people who wish to live abroad.

When you are looking for an international insurance plan, make sure it will cover all possibilities.  For example, it needs to cover dental care, as this can be expensive for people living in a foreign country.

You can take out a care cash plan to pay for long-term care in either a care home or in your own home.  Care cash plans will pay out either a lump sum or an income for a set period, or both, if you need long term care.  This type of plan is not for immediate care; it covers you against the possibility of needing care in the future.  The income from a care cash plan only lasts for a set period of time, not until you die.  It is not paid directly to the care home or other carers, as the amount paid out is based on contributions and not on the cost of the care.

An elderly cash care plan only pays out on specified physical and mental illnesses that are most likely to occur as you get older.  Insurers may have different specifications, but the illnesses normally include Alzheimer’s disease, motor neurone disease, Parkinson’s disease and pre-senile dementia.

Care cash plans will also pay out if you suffer from an injury or disease that prevents you from carrying out activities needed for daily living.  There is a list of five activities of daily living, which usually include continence, dressing, feeding, mobility and using the toilet.  The plan will pay out if you can no longer carry out three of the five activities on the list.  Some policies have a slightly different list of activities of daily living and some only say two of the five or only one of the five have to exist to qualify for a pay-out.