Health Insurance
At a glance... health insurance
Getting ill is never good news, but the option of going private can really soften the blow
We're lucky in the UK to have the National Health Service - in spite of all the criticism of it, the NHS is the envy of much of the rest of the world. All UK citizens are able to use the NHS to treat any illness or injury and generally at no cost. The NHS has some of the most able medical practitioners, state of the art equipment and facilities, and access to the latest treatments.
So why take out private health insurance? Well, the NHS is not without its flaws, one of which is that non-emergency treatment can take some time. Waiting lists are - officially at least - coming down, but there can still be a significant delay between diagnosis and treatment. And if this delay affects your ability to work, or even just to enjoy life, it can have quite severe repercussions.
Then there's choice. If you're paying for it - via insurance - you have much more say in the matter of your treatment. So you decide when, where, and by whom. You will also have the choice of the type of room you'll be able to stay in, and you're more likely to get comforts of home, such as television, unlimited visiting and better food.
Taking out private insurance doesn't mean you will be bypassing the NHS altogether, however. In the UK there aren't any private hospitals with an Accident and Emergency Department, and there are certain conditions that can only be treated in NHS hospitals. You're also most likely to retain an NHS GP, who will then refer you to a specialist if you have a complaint. It's at this point that the private healthcare will kick in.
Cover levels
There is a range of different levels of cover. The most inclusive - and most expensive - will allow you to bypass NHS services wherever possible and get treated for any condition by a private provider.
If you're looking to cut the costs of your policy, while still maintaining the reassurance that you can go private, many insurers offer policies that keep the NHS as the provider of first resort. This means that if your treatment is available on the NHS within a specified time - usually four to six weeks - and close to home, then you'll be treated there. If there's a long waiting list, or you'll have to travel a significant distance, then the insurance will pay for you to have the treatment privately.
Or you can go for a policy that gives you cash to cover any stay in an NHS hospital - you receive, say, £100 for every night you are in. This is designed to cover the cost of any transport or childcare costs, or for loss of earnings.
There is also a specific policy available that will provide you with an income if you are unable to work due to ill-health. Income protection insurance is not a health cover per se, but will pay out a percentage of your declared salary if you become unable to work for any length of time.
Then there are policies that cover you for services that are often not available on the NHS - dental and optician treatment are the most common, although you can get insurance for sports injuries and even alternative health therapies.
Exclusions
As with all insurance policies, there are going to be exclusions. The main one is for any pre-existing conditions - if you have suffered an illness or injury in the past, then you won't automatically be covered for it in any health insurance policy. Some insurers will allow you coverage, usually at a higher premium.
You do need to declare any previous conditions when you apply for the policy, as failure to do so may mean the insurer won't pay out - even if what you're claiming for is unrelated. Often when you apply, or later when you claim, the insurer will ask to see your medical records, so it will find out about your history.
Other exclusions are usually related to 'self-inflicted' conditions - ill health as the result of alcohol or drug use, for example, or through participating in dangerous activities. Some insurers also exclude HIV and AIDS-related illnesses, although this is less common nowadays.
Cost
There's no hard and fast rule for working out the cost of your premiums, and different insurers do it in different ways so it's worth shopping around. The two main factors will be your age and your health history - if you're young and have never had a day's illness in your life, you'll pay less, while if you're holder with a history of high blood pressure, your risk is greater and that will be reflected in the premiums.
Smoking history, occupation, hobbies and where you live will all have an impact, as in some cases will your family history - some conditions, such as heart problems or breast cancer, for example, are known to be hereditary and the insurer will include this in the calculation.
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