iQep: Insurance & Finance

There are several different types of health insurance, also known as Private Medical Insurance (PMI), and the policy that a person decides to take out depends on what type of cover is required and how much a person is prepared to pay.

Premiums vary enormously and are subject to criteria such as medical history and age of the insured. Generally, the broader the cover of the policy, the dearer the monthly premiums tend to be. It is also worth noting that health insurance premiums usually increase annually.

The price of monthly health insurance premiums can be lowered substantially by several factors. Choosing to exclude specific areas such as expensive private hospitals and specialist services such as physiotherapy or convalescent care that could just as well be met by the NHS, are examples of ways that a health insurance policy can be tailored to lower the cost of premiums. 

People are advised to choose a policy that suits them. If a person is generally in good health, it would be excessive and expensive, to take out a fully comprehensive policy. Individuals in this category would do just as well to get a policy that covered hospitalisation costs only.

Monthly premiums are also affected by who is covered under the policy. An individual’s cover is more expensive than family cover, which covers parents and two or three children for a lower overall price per person. Group medical insurance is a cost effective way of buying health insurance, and many companies offer it as a perk for their employees.

Not all health insurance products are the same. The right health insurance cover for an individual will vary depending on personal financial circumstances, as well as any history of illness, both of the customer and in their family. Based on various risk factors, the exact costs of a health insurance plan will differ, but there are a few basic types of cover that are the same for everyone.

For those with limited budgets, it can be prudent to opt for a co-payment plan. Many people will be familiar with this sort of plan from their car insurance – the insurance company agrees with the customer to pay a certain proportion of the cost of any health care. This is good news for those who are in relatively robust health, but still want to cover for the possibility of illness and injury. The plan is very flexible, as customers can choose what percentage they want the insurance company to pay – the greater the percentage, the higher the insurance premium, and vice versa.

A simple type of plan that is good for individuals that may need to have several small checks or procedures at hospital or at a dentist’s, is the cash cover plan. The insurance company simply agrees to pay a lump sum for each visit or treatment, and this is often one of the cheapest types of insurance plans. Full surgical operations are generally beyond the scope of this cover, however.

Comprehensive health insurance means cover for all medical emergencies, and will vary in cost depending on the value of treatment required. This is by far the best choice for those looking for complete peace of mind when it comes to healthcare insurance.

What is Health Insurance?

Health insurance is designed to cover the cost of personal healthcare.  There are different types of health insurance, but the most common type is private medical insurance, and covers the cost of healthcare expenses when unexpected or expensive illness occurs.  It allows the policyholder to seek private medical care, instead of waiting on NHS waiting lists. 

Where Can I Get Health Insurance?

There are two ways in which it is possible to obtain health insurance.  Firstly, some companies choose to provide cover for their employees.  Sometimes employees are required to make monthly contributions to the cover.  If they are required to do this, their employer may make equal or higher contributions so that the health insurance is provided to the employee at a nominal cost.  Alternatively, it is possible for individuals to approach the insurer directly to arrange health insurance.  There are many different insurance options available, offered by a large number of companies. 

How Much Does it Cost?

The cost of health insurance varies largely, depending on many factors, including the age, gender, health, and circumstances of the policyholder.  The level of the cover and different situations in which the policy will pay out will also affect your premium.  To make sure you get the best deal, it is a good idea to seek advice from a financial adviser, or at the very least use a price comparison website to ensure that you are getting the best deal.

As with any type of insurance, the levels of cover and the prices of premiums depend on the person being insured, his age, gender, lifestyle and career. There are many different options available to ensure that the policy is right for you.

First, it is important to bear in mind that age has a big impact on the cost of health insurance. As we get older, we become more prone to illness, so the likelihood of the insurer having to pay out is greater, hence higher premiums. However, there are companies that specialise in insurance for older people and tailor their policies to provide adequate cover.

Some people may not want fully comprehensive cover, because they feel as though they do not need private healthcare for all of their medical treatments. In this case, limited cover is ideal and the insured chooses only a few medical conditions to be covered. For example, someone who has a family history of heart disease may wish to be insured for only that.

If there are hereditary illnesses known about when the insurance policy begins, the premiums will undoubtedly be higher. This may be worthwhile, if it means fast private treatment. Similarly, the past health of a person will affect the price of premiums, and some pre-existing conditions may not be covered. However, some insurers may be flexible and allow the condition to be covered again, if the insured party has not suffered with it for two years or more.

By researching, shopping around and speaking to professionals, anyone will be able to tailor his health insurance to get the cover he needs for the right price.

There are a host of reasons why people take out private health insurance policies. Concerns about falling ill and missing time from work, particularly for those who are self-employed or whose employer does not provide substantive sickness payments, are common. Simply knowing that treatment can be accessed quickly, resulting in the period where income might be compromised being shorter, is a comfort worth paying for. 

It is well documented that life expectancy levels in the UK are increasing. As the population ages, more and more are joining long NHS waiting lists for hip replacement operations, for example. By taking out a health insurance policy, the impact such a condition will have on the quality of that individual’s life can be considerably reduced, thanks to the provision of swift access to consultants, surgery and aftercare services. Regardless of any other benefits, simply reducing the time a person has to suffer painful and debilitating conditions justifies the monthly payments.

Any health concerns you may have, whatever your symptoms, can be quickly assessed and treated, dramatically reducing the possibility of the problem becoming chronic. However, health insurance is not just for people who are closer to their retirement than their teens. Health insurance can provide cover for injuries sustained from a favourite sporting activity, hobby or perhaps dental surgery for troublesome teeth. 

Early diagnosis and treatment, circumventing potentially long NHS waiting lists, is surely reason enough to take out a policy. Nobody likes to be ill, but if you are, returning you to good health as quickly as possible is the key benefit of health insurance.

The cost of dental care can vary greatly, depending on how you choose to obtain treatment. There are two main options available to patients, National Health Service dentists or private practices and each has its own fee structure.

The level of dental treatment you need will also influence how much you may have to spend. Currently, the UK government has three levels of cover and cost for treatment through a National Health Service dentist. They are:
•    Level 1 – about £17 and includes check-ups, preventative care, and emergency treatment.
•    Level 2 – about £47 and includes extractions, root canal work and fillings.
•    Level 3 – about £204 and includes more complex treatment, such as crowns, dentures, and bridges.

Though these simplified charges are helpful in understanding what patients will be required to pay, many dentists were upset by this way of calculating fees and left the NHS system. It can therefore be quite hard to find an NHS dentist, which has led many people to seek out private practices.

The advantage of the NHS system is that patients can budget for their treatment, knowing exactly what their costs will be. For private patients, dental insurance cover allows them to do the same.

There are various types of dental cover available and before choosing a particular plan, it is wise to look at several different options and consider which one is best for you.

When you are young and healthy, health cover may not seem like an immediate priority, but as you get older, it becomes a major concern. In reality, health cover is an important consideration for people of all ages, as hereditary issues or illnesses can occur at any time. So, what happens as we get older and how does it affect our choices about health cover?

Getting Older

Getting health cover when you are young makes sense, as we all want to live a long, healthy life. The older you become, the more expensive health cover gets and the more health problems you are likely to experience. Studies show that the population of the UK is living longer and insurance provides a way of helping people stay healthy, whatever their age.

Dementia

As you age, the risk of disease and illness increases. Among health conditions that are more common the older you get is the progressive brain disease, dementia. In the next 20 years, dementia cases are set to rise further, which means that the cost of caring for suffers will also increase. An effective way to secure peace of mind and ensuring ongoing care if dementia strikes is to purchase health insurance.

Safeguard

According to the Alzheimer’s Society charity, no one should have to choose between paying for crucial care or buying essentials such as groceries. Investing in a good health cover plan can safeguard people against having to make such worrying choices later in life.