Private health insurance used to be something that only the wealthy and well-known got. Health insurance prices have gone down, which means that everyone, no matter how much money they have, can get the peace of mind that comes with private health insurance.
Private health insurance has a lot of different names, such as private medical insurance (PMI), hospital plans, health plans, health insurance, and cash plans. In one way or another, all of these plans are meant to help you pay for health-related costs.
You can also get dental insurance or other types of private health insurance.
Permanent health insurance is not the same as private health insurance. Permanent health insurance has nothing to do with medical costs and gives you money if you become permanently sick.
Here, we talk about private medical insurance and the different kinds of coverage that are available.
Why should I pay for my own health insurance?
People are choosing private health insurance more and more because NHS waiting lists are getting longer and patients don't have much say over which hospital they go to or what time of day.
This gets rid of the long and often stressful wait for an appointment and means that, in most cases, you can choose which hospital you go to and have an appointment time, often within a few days.
It gives you peace of mind to know that if you get sick, you will be seen and treated quickly at the best hospitals.
What's the difference between cash plans and private medical insurance (PMI)?
Most PMI policies cover the cost of medical care. A PMI policy will pay for your treatments and hospital stay, but there are limits on which hospitals you can use and, in some cases, the type of care you need.
But you can get different levels of coverage, so the more you pay, the more benefits you'll get, like a bigger choice of hospitals, coverage for more types of medical care, etc.
After your doctor sends you to a specialist, your insurance will pay the bills for tests, surgeries, and other necessary care. Most of the time, all costs are covered. As a result, PMI can be more expensive than basic health insurance like cash plans because it covers almost everything.
Cash plans, or hospital cash plans, are less expensive alternatives to PMI. They are meant to supplement the services offered by the NHS, and they pay for things like dental and eye care bills.
Some of the plans also help pay for consultations and treatments like physiotherapy, chiropractic care, and even so-called "alternative" treatments like acupuncture and reflexology.
Cash plans help pay for common treatments, so it is expected that you will make several claims over the course of a year, like when you go to the dentist, eye doctor, or physiotherapist.
How come cash plans cost less?
Individual cash plan claims are lower because they don't pay for the cost of treating specific illnesses. Instead, bills are reimbursed up to an agreed limit or there is a fixed daily amount if they are hospitalised. This makes cash plan premiums lower.
Can I have both a cash plan and a PMI policy?
Yes, a lot of people who buy PMI on their own or whose employers give them PMI add a cash plan to their PMI coverage. This means that they can get the care they need, whether they need to go to the dentist or have major surgery.
How does "self-pay" work?
Self-pay can be used instead of both PMI and cash plans. You only pay for an operation when you need it, so you don't have to pay monthly premiums for a long time. But you should think carefully about this option. What would happen if you got sick with a very serious illness? Could you pay the price?
I've heard of a health insurance plan where the healthier you live, the cheaper your premiums are. Is this true?
Yes! Your premiums for a new policy on the PMI market are based on how healthy you are. This is a good reason to stay healthy! This particular health insurer recognises and rewards healthy living. If you walk your dog a little more often or make sure to eat your five servings of fruit and vegetables every day, you can save a lot on your premiums. They also help you stay healthy by giving you discounts with their health and wellness partners.
What else do you have in mind?
There are a lot of new kinds of cash plans, like dental insurance, that cover specific treatments or situations.
What does dental insurance cover?
There are a few companies that offer dental insurance to both individuals and families. Most plans cover costs related to maintenance (like regular check-ups, x-rays, and visits to the hygienist), emergency care (like if you hurt your teeth in an accident), and treatments (eg fillings, bridges and crowns).
Some also give you a lump sum payment if you are diagnosed with oral cancer and cover you all over the world.
