PLANNING for getting ill may sound silly, but it makes a lot of sense. It’s something that most of us fear but we will be extremely lucky to avoid needing medical treatment at some time.
With that in mind, spending a few pounds now on medical insurance can prove to be a great investment in yourself.
1Let’s face it, it can take a long while to recover from an illness or injury, especially if you have to rely on NHS appointments and lengthening waiting lists.
But if you have private medical insurance (PMI), also known as private healthcare insurance, you don’t have to worry about waiting for the right treatment after an illness or accident.
PMI is an insurance policy which is designed to meet some or all of the costs of private medical treatment.
It’s a policy that is renewed each year and the premium is based on where you live, your age and your medical history. It’s also known as private healthcare insurance, PMI and health insurance.
PMI gives you faster access to a dedicated consultant or surgeon.
It can prove to be a real lifesaver if you do fall prey to illness. It can cover everything from diagnosis such as scans and tests, to treatment such as surgery where you will even get your own private room in an NHS hospital.
You can also usually cover yourself as well as your children and spouse.
Policies do not cover pre-existing conditions, so it won’t pay out if you have just recently been diagnosed or are currently suffering symptoms and looking for immediate treatment.
Policyholders have to pay a yearly renewable policy and the premium is based on your location, age and medical history.
Some policies offer ways to reduce the cost of coverage by demonstrating that you lead a healthy lifestyle, for example, by going to the gym regularly.
PMI works using two different elements: diagnosis and treatment. A policy is initially based on which of these, or both, are important to you.
Diagnosis covers the cost of such things as scans, tests and consultations while cover for treatment will cover the cost of surgery, radiotherapy, specialist fees, hospital fees and so on.
With average premiums of around £1,000 per year, PMI is often considered a luxury purchase and only for those with high incomes, especially as the NHS is free to use.
But if you think about it as an investment in yourself, it could be worth thinking seriously about paying out for it, as long as you can afford it.
Typically PMI works well for older people who have paid off their mortgages. That’s because as you get older, becomes more important, and it can therefore make sense to spend money on your health.
PMI also works well for families with children with many insurance companies offering child options on their policies.
It can be crucial for self–employed people and business owners as an illness or injury can mean being forced to take costly absences from their business while waiting for necessary NHS treatment.
According to NHS figures almost 70,000 patients are waiting more than 18 weeks for treatment. The waiting period starts from the time the hospital or medical service receives your referral.
PMI not only will help you avoid having to endure long waiting lists but it will also give you a lot of attractive benefits. These include private hospital rooms, waiting rooms, a dedicated consultant or surgeon and generally an overall higher standard of care.
With a wide range of firms offering PMI there are a wide range of costs, meaning that you could well find an affordable policy.
Some insurance suppliers are well-known, such as Bupa, Vitality, Aviva, Axa PP, but there are many more to choose from.
You can find the right policy for your needs at Howden Life & Health.
According to Howden Life & Health, premiums range from around a tenner a month for basic cover to thousands for top-of-the-range insurance.
The average monthly cost is £104, but it will vary depending on your age, location and any existing health conditions you may have.
Some policies will let you cut the cost of cover by showing that you lead a healthy lifestyle through regular exercise.
However medical insurance does increase in cost every year for a lot of reasons. Mainly it’s because as we get older the risk of health problems goes up as does the cost of drugs, doctors, hospitals and treatment.
But rather than paying higher premiums, switching to another provider or making changes to your policy can save a deal of money.
Switching policies at the end of each year means you could even save £644.854 per year, or 29 per cent of the cost*, according to Howden Life & Health, by shopping around for the best PMI deals.
*Customers saved an average 29%, by switching insurers via Howden Life & Health. The average saving was £644.85 per year. These figures are based on a review of 157 clients that switched to a comparable or better policy. (May 2023)