Many of us wonder what or if we need Life or Private Medical Insurance, here we answer some of those questions.
Investing in a Life or Private Medical Insurance policy is a personal choice. Everyone will have differing life scenarios, from fitness level and age to size of family and medical history. Here, we offer some of the reasons why our customers choose to invest in life and private medical cover to protect themselves and their families.
NHS vs Private Medical Cover
If you’re here in the UK, you will always get free medical treatment on the NHS. So, the question arises, do you need extra protection and, what does private medical insurance do that the NHS doesn't?
Well, it all depends on your situation and your preference. In many cases, if you choose private medical insurance, you are likely to get a diagnosis faster than through the NHS. It will offer you a prompt referral for treatment in a private hospital – at a time and place that’s convenient for you. Health insurance is designed to cover the cost of private hospital stays, scans and surgical procedures of all kinds. A majority if not all costs will be covered but there is sometimes an excess, co-payment or shared responsibility to be borne by you as the policyholder and can also apply to dependants covered under your policy.
What it’s unlikely to cover is existing problems, visits to Accident and Emergency departments, drug abuse, organ transplants, normal pregnancy, non-essential cosmetic treatments and some companies (not all) do not cover the cost of injuries caused by participating in so-called dangerous sports such as hang-gliding as one example.
You’ll have many more choices with health insurance in place, and you'll have the peace of mind that comes with knowing everything’s taken care of.
In addition, many health insurance policies offer drugs and treatments that aren’t provided free of charge by the NHS. Things like specialist surgeries, alternative therapies, 24-hour phone lines that give you other kinds of support. Every policy is different, and we can talk through these benefits with you – explaining what they are, what they cover, and how much they cost.
What does Life Insurance cover?
Not everyone needs life insurance (also known as protection insurance, life cover, and death cover). But if your children, partner, or other relatives depend on your income to cover the mortgage or other living expenses, then the answer is yes – you probably do want life insurance, since it will help provide for your family in the event of your death.
You might also want a policy that covers your funeral expenses.
You can’t rely on the government to take care of your family – the money they would get from the state is much lower than you’d probably expect.
If you want to provide for your family financially if you die, do think about getting life insurance.
What are the alternatives to health and protection insurance?
HEALTH: If you don’t feel comfortable depending on the NHS alone, but aren’t sure about health insurance policies, then there are other alternatives.
Some private sector hospitals offer interest-free credit schemes that allow you to spread the payment of your medical bills over a fixed period, typically a year. Such schemes do not address the financial problems that a long stay in a private hospital may bring - they simply spread the financial pain over a longer period.
Hospital cash plans are another option. These are available from some insurance companies and pay a tax-free sum for every day you are treated as an in-patient or day-patient in either an NHS or a private hospital.
Other cash benefits may be payable for treatments such as dental work. But such plans are no match for private medical insurance because of the low benefits on offer – but they often offer other benefits such as access to helplines.
At the other extreme, cover for major medical expenses can be bought that will provide a tax-free cash sum if you undergo surgery. But this offers no guarantee that the cost of private treatment will be met, and fails to provide cover for non-acute operations.
Critical illness cover is an insurance policy that pays out a sum of money after you’ve been diagnosed with one of many specific serious health problems. You can use that money for anything at all, although many people consider the policy as a way of paying for treatment.
LIFE: If you feel that you do not wish to take out life or protection insurance for any reason, then there are some alternatives to life insurance, but if you die suddenly, the alternatives may not give as much protection to your family.
State Benefits/Pensions: State benefits or your pension may not offer sufficient funds for your lifestyle, and each person's own financial status and needs must be examined to assess this but you can set up or pay into a pension, state, private, or otherwise.
Pre-pay Funeral Expenses: Today you can arrange your own funeral, pick your burial plot or cremation, and pre-pay these items so that when the time comes, your family does not have to worry about arranging your funeral. Because you will have already made these arrangements, your family knows that your last wishes will be met. When you pre-pay your funeral expenses, you do not need a life insurance policy to cover these costs.
Savings Accounts: For some people, the alternative to having health insurance is to set aside a sum of money and create a fund, or save for that purpose. Instead of buying life insurance, you can open a savings account and deposit a set amount there weekly, monthly or at intervals of your choice. When you die, your family has immediate access to the funds in this account to pay for funeral costs and other costs associated with your death. In order for this method to be an effective alternative to life insurance, either you must start saving very early in life or you must save larger amounts to reach the monetary goal you want to have for your family. Remember though, if you die before you reach your goal, your family will only have whatever amount you have put away for them. With life insurance, if you buy the policy today, it goes into effect today, and if you die tomorrow, your family gets the whole amount.
If you’re considering this kind of savings accounts option, please talk to an independent financial adviser and tax adviser about the most appropriate way to set this up. Some providers do offer cash plans and cash funds, so do get in contact with us if this might be for you.
Where can I find out more?
CALL US or use our CONTACT PAGE. We’re here to help you understand what the benefits of health and protection insurance might be, which will be unique to your situation – and if it’s not right for you, we’ll say so.
Our expert healthcare consultants are trained to listen, so they can understand all of the things you might be thinking about. The costs, the benefits, who you are looking to cover in your family, which treatments you’d be eligible for, and which you wouldn’t. It’s all about peace of mind.
We’re very happy to chat about health and protection insurance in general with you. Our advice is free of charge. We’re paid a commission by the insurers we work with when you buy a policy from them.