Despite the fact that UK citizens are entitled to free medical care on the NHS, more than 7 million people in the country currently pay for private medical insurance. Choosing to purchase health insurance in Britain is therefore purely a matter of personal choice.

People opt for private health insurance for a variety of reasons, the main one being that it will give them more choice, should they require specialist medical treatment. If a patient is treated on the NHS, they usually have little choice as to the consultant they are treated by, or the hospital in which they are treated. Usually, geography decides the locality of the treatment. With medical insurance, patients have a broader choice of doctors, consultants, treatments and hospitals.

More and more people are taking out medical insurance as NHS hospitals receive increasingly adverse publicity with regards to poor hygiene standards, more cases of MRSA infections and over-crowded wards. Patients would rather receive treatment in private hospitals that offer patients individual rooms with en suite facilities and more personalised nursing care, thus making a patient’s stay in hospital more comfortable. Additionally, with less pressure on beds and more resources, private hospitals are able to spend more time and money on cleaning facilities and, therefore, reduce the instances of MRSA.

With regards to serious illnesses, such as cancer, there may be certain treatments and drugs available privately, which are not paid for by the NHS.

Overall, though the main factor determining an individual’s decision to purchase health insurance is to avoid long waiting lists when in need of urgent medical care.

Different people have different reasons for choosing to take out health insurance, but there are several common reasons.  The numbers of people taking out health insurance are rising, and it could be argued that the media has a large influence over this. 

Recent coverage of MRSA and other NHS hospital superbugs and cleanliness issues often cause people to seek an alternative in the event of illness.  There have been many cases in the news of NHS patients going to hospital for routine operations and treatments, only to end up with a life threatening super bug.  The cases of infections in private hospitals have been reported to be lower, and health insurance covers the individual’s private medical costs.

NHS waiting lists can also be long, and leave many no option but to pay for their own private medical care.  However, if an individual has health insurance, the policy will pay out for this and allow them to seek the treatment they need as soon as they need it.  Similarly, some people feel that they do not get a good enough standard of care in NHS hospitals, and prefer to take private treatment. 

Many health insurance policyholders choose to take out health insurance when taking out a mortgage, to cover them in the event that they become seriously ill and unable to pay their mortgage.  This type of health insurance, critical illness cover, will pay out the insured sum to the policyholder should they become seriously ill, leaving them able to concentrate on their recovery and not worry about their financial commitments.

Health Insurance can provide security and confidence for anyone who cannot afford to be ill or injured for long periods of time.  NHS waiting lists for non-life threatening procedures can be long, which is inconvenient for anybody suffering with a chronic condition.  Meanwhile, that person may not be able to work during the waiting time, which will have an effect on their income and the family they support.  More and more people are turning to private healthcare treatments in order to bypass the waiting lists, be treated promptly and get back to work as soon as possible.

However, private healthcare comes at a high cost.  Specialist consultations, surgeries, medicines and nursing costs in private hospitals can be incredibly expensive. Health insurance can pay for all of this. Considering the cost of these procedures or the potential loss of income when being ill, buying health insurance is a valuable investment.

Health insurance may be particularly useful for anyone who has dependents such as young children or elderly parents, and cannot afford to lose their earning power for long periods of time or to be unable to take care of their family.  It may also be beneficial for professional sports players or others with a very active job, who need to ensure they remain fit and healthy.

Young people may feel that they are completely healthy and do not require health insurance, but buying a long term policy may be a good investment for the future, as medical problems are more likely to occur with age. Nobody can fully control their future health but they can plan ahead and protect themselves with health insurance.

With intense competition in the marketplace between rival insurance companies, good deals are available everywhere and some will be much cheaper than others. Though seeing a cheaper premium might be tempting, it is crucial when taking out health insurance that the policy will address all the needs you have highlighted as important to you and your family. Many insurers offer fairly extensive coverage for a reasonable cost, though care should be taken to study all the inclusions and exclusions detailed in the policy.

The main issue is clearly what the health insurance cover includes. If you have a family history of a certain illness or condition then you would most likely wish that to be covered for it. If you are generally of good health and live a healthy lifestyle you might wish the cover to be more generalised and of a lower level, which would cost less.

Being able to pay the premiums is also clearly a major factor. Remember, cheaper does not necessarily mean better value for money and being able to afford the premiums, which will inevitably increase as you get older, is obviously a key factor. 

As with all insurance policies, whether they are for your car, home or whatever else, there will be exclusions. Health insurance is no different in that respect and you should study these details carefully.

Finding insurance providers is a simple process online. Most sites will guide you through the application process and answer the majority of queries you might have. If you feel that you need more direct assistance, then your local insurance broker will be able to assist you.

With more and more NHS dentists going private, is it worth the extra cost to follow their lead?

Dental bills can quickly escalate with treatments such as veneers and fillings often needing retreated.  You can arrange cover from as little as £3.69 a month which gives preferential treatment to the dentist you want, as well as discounts and is excellent value for those with not too many teething problems.  For more comprehensive cover you will have to pay a little more and around £20 per month can assure you of cover for fillings, hygienist work, check-ups, x-rays and a range of other work.

NHS caps have limited the costs but as dentists give preferential treatment to private patients you may have to endure lengthy waits.  Taking out insurance is a way to get the best treatment without the exponential rises in cost.  Another big benefit is the simplicity.  Many dentists will deal direct with your insurers, giving you no headaches trying to secure guarantees of cover.  Payouts are straightforward and generally do not vary to the same extent as private medical insurance premiums which rise considerably with age.  

It is important to consider that not all treatments may be covered by your plan such as extensive reconstruction work and some insurers may limit the amount of claims accepted annually.  Other things to take note of when selecting cover are capitalisation schemes that can spread the cost throughout the year and cash plans, which offer low-cost cover but may require up-front payment with a view of claiming back fees incurred.

There is a significant difference between life insurance and health insurance that may not be clear at first glance.  When choosing a health or life insurance policy it is very important to know the difference and read the policy documents to ensure you know exactly what you are getting.

Health Insurance

Health insurance is designed to help with the cost of medical treatment and provides access quickly to good quality treatment in the event that the policyholder becomes ill.  It may offer full cover or partial cover for certain conditions, depending on the price paid and the medical history of the policyholder.  Health insurance can provide cover for many conditions that are expensive to treat, or can provide speedy access to expertise or excellent facilities should a policyholder require treatment.

Life Insurance

Life insurance is designed to ensure that if a policyholder dies unexpectedly, their loved ones and beneficiaries are financially secure and are not placed in undue financial hardship.

There are two main types of life insurance: term life insurance and whole life insurance.  Term life insurance is a simpler and less expensive policy that provides insurance for a set period of time with no financial return at the end.  Whole life insurance is a life insurance policy and an investment scheme whereby part of the premium is invested into some type of asset portfolio such as a mutual fund or shares.  These are usually more expensive and often it is more economical to have a separate life insurance policy and unrelated managed investment portfolio.

People who buy pre-funded care plans are worried that they may need to have long-term care sometime in the future, either at home or in a care home.  The insurer has pre-set criteria concerning the insured’s inability to perform certain daily activities.  If a person needs care but does not meet these criteria, the policy will not pay out.  Pre-funded care plans pay out until you do not need the care anymore, usually when you die.  Although some have restrictions and will only pay out for a set period of time, such as three years, for example.

Though people of any age can buy pre-funded care plans, they are rarely purchased by people under 55 and some insurers have a minimum age of 40 or 50.  When deciding to buy a pre-funded long-term care plan, remember that only one in four people need to go into a care home.  Three in four people, therefore, will not need such care and this should be taken into account before deciding to invest in pre-funded care plans.

Pre-funded care plans are normally tax-free and can be paid out as an income to cover the care home fees.  Pre-funded care plans can be bought with a lump sum premium or an annual or monthly payment.  If you die without needing the care, there will be no pay-out, unless the plan includes a death benefit.  The policy will pay out if you need care earlier than anticipated, unless there is an age restriction. There would be no payment for temporary care, only permanent care.

An immediate long-term care plan is a type of annuity where you pay the insurer a lump sum to get a guaranteed income for life.  You buy this type of policy when you are about to start needing care, either at home or in a care home.  A medical assessment will be done to work out how much you will need to pay to get the income required to pay for your care.  The policy will pay out for as long as you need care, usually until you die.  As you have to have been assessed as needing care to qualify, you will almost certainly make a claim.

You cannot usually cancel this policy or get your lump sum payment back.  Your family will not get any of the money you pay in to the plan back if you die sooner than expected, although there is sometimes an option to protect the capital in case of early death.  If you live longer than is expected, the insurer simply carries on paying.  Some of the long-term care plans pay out on a level benefit basis, while others allow you to index link them.  Some insurance companies insist that the benefits are paid directly to the carer or care home, while others pay you directly.

Similarly, a deferred care plan is an annuity used to pay for long-term care except that the benefits are not paid out immediately, but instead, in a few months or years when you need it.