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.