Do I need health insurance?
The average wait for an outpatient appointment with the National
Health Service in England is around seven weeks. Therefore,
as a result many opt for a private health insurance policy,
which covers the cost of private medical treatment in the case
of curable or short-term medical conditions.
Health insurance provides the policyholder with the promise
that treatment will be available as soon as they injure themselves
or fall ill. The Association of British Insurers states: “Most
people buy this type of insurance to gain the reassurance of
knowing that treatment is available promptly, if they become
ill or are injured.”
Private health insurance should not be seen as an alternative
to the NHS, as private hospitals are generally not equipped
for casualty situations. However, it will ensure that you get
care more quickly.
Taking out a health insurance policy is a good idea as it can
ease some of the common fears experienced by those who fall
ill. For example there is no need to wait for a long time to
find out what is wrong and patients will go straight on the
waiting list for surgery if it is required.
So what different types of health insurance exist in the UK?
There are many different plans available for health insurance
in the UK.
Critical Illness – Critical illness insurance covers patients
who are suddenly diagnosed with severe illness. They generally
pay a tax-free lump sum of money that can be used by the patient
according to their wishes. This money can be used for almost
anything such as leisure or debt repayment.
Income Protection – Income protection insurance is important
for self-employed people. In the UK should you become unable
to work, you will receive £60.20 per week. Also the plan will
pay up to 65% of your gross income should you find yourself
unable to work due to sickness or an accident. The premium for
this type of insurance is calculated depending on the type of
work that you are involved in and how quickly you want benefits
to pay. These benefit payments cease when you are fit enough
to return back to work.
The Health Trust Fund – This is a current policy designed to
replace the traditional health insurance scheme. This type of
plan takes advantage of trust fund laws in the UK that permit
low cost cover, no excess payments, no automatic premium increases,
comprehensive access to medical facilities and no age loading.
However, the Financial Services Authority does not regulate
health trust funds at this stage.
Cash Plans – This type of insurance is a low-cost plan that
is put into place to provide cash for policyholder’s medical
expenses. These could include optical, dental or nursing benefits.
This type of plan is available for both families and individuals.
However, it is important to bear in mind when choosing health
insurance the pre-existing conditions and exclusions policy.
Exclusions refer to conditions under which insurers will refuse
to pay cover and sadly some of these exclusions exist in health
insurance. These can include chronic, recurring or long term
conditions or diseases, cosmetic surgery and experimental treatments.
Pre-existing conditions refer to medical conditions that have
been diagnosed or treated prior to joining a new health insurance
plan. Commonly, the insurer will exclude cover for any condition
that has existed in the last five years. Some insurers will
make conditions eligible for cover when you are shown to be
completely clear of the condition after your policy begins.
A law called the Health Insurance Portability and Accountability
Act means that pre-existing conditions will be covered providing
that you have been insured for twelve months previously, should
you join a group plan through an employer.