photo credit: faungg

Health insurance is a type of policy designed to cover the costs of personal healthcare, with the most common type of insurance in the UK known as Private Medical Insurance (PMI). A PMI policy is usually paid in monthly, quarterly or annual premiums for a contract which is renewable every 12 months. Private health insurance is designed to provide access to healthcare which is not always readily available via the National Health Service (NHS).

Private health insurance is used by approximately 10% of the UK population, and is most commonly used as an addition to the NHS. Health insurance can limit the conditions which can be treated on the policy, for example, AIDS/HIV is a common exception. However, these exclusions will differ between providers, with some covering the costs for treatment on a wider variety of conditions. One of the most common reasons for people seeking health insurance is to avoid the lengthy waiting lists associated with the NHS.

There are different types of health insurance policies ranging from very basic through to complete cover. Some insurance providers will offer you a reduced premium if you can demonstrate that you have a healthy lifestyle, for example, you don’t smoke, eat a healthy diet and keep fit. You should expect the premiums for your health insurance to increase as you get older due to the increased risk that you will have to claim on the policy.

An alternative type of health insurance is known as a health cash plan which will contribute towards routine healthcare. An amount of money is paid out when you visit a dentist or optician and allows you to spend it on what you want.

When you are looking for a health insurance plan it is important that you establish exactly what the policy will pay out for in certain circumstance. If you have decided upon a low cost plan, you might find that the insurance will only pay out if you are admitted to hospital. This would leave you responsible for any costs associated with visits to the Consultant as an outpatient. It is essential that you read the small print, not only to establish treatment available but also whether your condition is covered by the policy.