Why private health insurance is still popular
During times of economic turmoil, insurance policies are usually among the first cost-cutting casualties. Unfortunately, the true value of any policy is often not revealed until it is needed, whereas the regular cost of premiums is likely to stretch an already tight budget.
Research from Sainsbury's Finance reveals half a million Brits have cut back on home contents cover in the past 12 months, leaving themselves with no protection in the event their property is stolen, destroyed or damaged.
However, private medical insurance (PMI) seems to be faring surprisingly well during the economic downturn. Bupa recently released results that show customer numbers were up 2% by the end of 2008, and figures from Simplyhealth reveal sales of HSA's employee paid Health Cash Plan were up 25% in the final quarter of last year.
When cutting back costs more
The appeal of PMI
Private medical insurance (or private health insurance) is designed to meet the cost of non-NHS medical treatment in the event you experience health problems.
Holding a PMI policy means you may have a say in which hospital you are treated at and which specialists you see. You're also likely to have more comfortable accommodation if you are treated privately, probably in your own en-suite room.
It seems the key appeal of PMI is that it allows individuals swift access to health care when they need it. Although the NHS says its '18 weeks' waiting time target has now been met (whereby patients referred from a GP for further treatment can expect it to commence within that timeframe), research from Bupa shows more than 80% of people feel this is still too long to wait for medical care.
The insurer's survey found that 49% of respondents believed hospital waiting times should be less than one month. Meanwhile, 69% of people were concerned their health could deteriorate further if they went without medical attention for as long as 18 weeks.
Compare quotes on private health insurance
A necessity or a luxury?
Despite the effects of the economic downturn, it seems some people view private medical insurance as a necessity rather than a luxury.
This may be because getting back to work as soon as possible after an illness is an important priority. In the case of self-employed people, PMI can be invaluable. Ensuring medical treatment is concluded as swiftly as possible may help minimise loss of earnings.
In recent years, many private companies have offered PMI as a benefit for their workers. Private health cover is advantageous both for the employer and the employee, as it can help to reduce the amount of sick leave an individual needs should they become ill.
Keep in mind that even if you think private medical insurance is a must-have, it's still important to consider the price of your policy.
Protecting your income in the crunch
Cutting the cost of PMI
As with any form of insurance, your insurer will calculate your PMI premium based on risk. The more likely it is you will make a claim, the more expensive your policy is likely to be.
Therefore, your age, current state of health and lifestyle are likely to have an impact on the price you pay for PMI. If you are overweight or a smoker you should expect to pay more for private health cover.
Some private medical insurers offer incentives to policy holders encouraging them to lead healthier lifestyles. Companies may reward such activities as going to the gym and giving up smoking by reducing the price of future PMI premiums.
The level of cover you choose will also have a significant effect on the price of PMI. Some policies will cover overnight in-hospital care only, while a more comprehensive policy could include cover for day-patient treatment (where you have a procedure done and leave hospital on the same day) as well as out-patient care.
Similarly, a policy that includes GP services, overseas medical treatment and offers the patient a high level of choice with regards to which hospitals and specialists they visit is likely to be more costly than a basic PMI plan.
Small things that make a big difference to insurance costs
Comparing cover
If you're considering taking out a PMI policy, or would like to cut the cost of your existing health insurance, it's crucial to shop around.
In addition, it's essential to ensure you compare similar policies. Some PMI policies come with exclusions and rules which will prevent customers claiming for certain conditions, such as illnesses that arise as a result of drug abuse, pre-existing conditions and terminal illnesses. It is important to know exactly what is and what isn't covered by a PMI policy in order to assess its suitability and decide whether or not it offers you value for money.
The price of peace of mind?
It may be that as the effects of the recession continue to unfold, PMI policies will decline in popularity.
However, it seems there are many people in the UK who would rather make cutbacks elsewhere than sacrifice the peace of mind PMI offers.
Eamon Hynes, protection insurance expert at BeatThatQuote.com, says, "Once consumers experience making a claim under a PMI policy, they generally have an immediate understanding of the benefits of the policy and why they need it.
"Many other forms of insurance are much more intangible and are therefore easier to let go when money feels tight. However, people can more easily perceive the advantages of private medical insurance and may feel a stronger, more emotional pull towards these types of policies."
sourse: BeatThatQuote.com
Research from Sainsbury's Finance reveals half a million Brits have cut back on home contents cover in the past 12 months, leaving themselves with no protection in the event their property is stolen, destroyed or damaged.
However, private medical insurance (PMI) seems to be faring surprisingly well during the economic downturn. Bupa recently released results that show customer numbers were up 2% by the end of 2008, and figures from Simplyhealth reveal sales of HSA's employee paid Health Cash Plan were up 25% in the final quarter of last year.
When cutting back costs more
The appeal of PMI
Private medical insurance (or private health insurance) is designed to meet the cost of non-NHS medical treatment in the event you experience health problems.
Holding a PMI policy means you may have a say in which hospital you are treated at and which specialists you see. You're also likely to have more comfortable accommodation if you are treated privately, probably in your own en-suite room.
It seems the key appeal of PMI is that it allows individuals swift access to health care when they need it. Although the NHS says its '18 weeks' waiting time target has now been met (whereby patients referred from a GP for further treatment can expect it to commence within that timeframe), research from Bupa shows more than 80% of people feel this is still too long to wait for medical care.
The insurer's survey found that 49% of respondents believed hospital waiting times should be less than one month. Meanwhile, 69% of people were concerned their health could deteriorate further if they went without medical attention for as long as 18 weeks.
Compare quotes on private health insurance
A necessity or a luxury?
Despite the effects of the economic downturn, it seems some people view private medical insurance as a necessity rather than a luxury.
This may be because getting back to work as soon as possible after an illness is an important priority. In the case of self-employed people, PMI can be invaluable. Ensuring medical treatment is concluded as swiftly as possible may help minimise loss of earnings.
In recent years, many private companies have offered PMI as a benefit for their workers. Private health cover is advantageous both for the employer and the employee, as it can help to reduce the amount of sick leave an individual needs should they become ill.
Keep in mind that even if you think private medical insurance is a must-have, it's still important to consider the price of your policy.
Protecting your income in the crunch
Cutting the cost of PMI
As with any form of insurance, your insurer will calculate your PMI premium based on risk. The more likely it is you will make a claim, the more expensive your policy is likely to be.
Therefore, your age, current state of health and lifestyle are likely to have an impact on the price you pay for PMI. If you are overweight or a smoker you should expect to pay more for private health cover.
Some private medical insurers offer incentives to policy holders encouraging them to lead healthier lifestyles. Companies may reward such activities as going to the gym and giving up smoking by reducing the price of future PMI premiums.
The level of cover you choose will also have a significant effect on the price of PMI. Some policies will cover overnight in-hospital care only, while a more comprehensive policy could include cover for day-patient treatment (where you have a procedure done and leave hospital on the same day) as well as out-patient care.
Similarly, a policy that includes GP services, overseas medical treatment and offers the patient a high level of choice with regards to which hospitals and specialists they visit is likely to be more costly than a basic PMI plan.
Small things that make a big difference to insurance costs
Comparing cover
If you're considering taking out a PMI policy, or would like to cut the cost of your existing health insurance, it's crucial to shop around.
In addition, it's essential to ensure you compare similar policies. Some PMI policies come with exclusions and rules which will prevent customers claiming for certain conditions, such as illnesses that arise as a result of drug abuse, pre-existing conditions and terminal illnesses. It is important to know exactly what is and what isn't covered by a PMI policy in order to assess its suitability and decide whether or not it offers you value for money.
The price of peace of mind?
It may be that as the effects of the recession continue to unfold, PMI policies will decline in popularity.
However, it seems there are many people in the UK who would rather make cutbacks elsewhere than sacrifice the peace of mind PMI offers.
Eamon Hynes, protection insurance expert at BeatThatQuote.com, says, "Once consumers experience making a claim under a PMI policy, they generally have an immediate understanding of the benefits of the policy and why they need it.
"Many other forms of insurance are much more intangible and are therefore easier to let go when money feels tight. However, people can more easily perceive the advantages of private medical insurance and may feel a stronger, more emotional pull towards these types of policies."
sourse: BeatThatQuote.com
Labels: insurance
