Private health insurance

Some insurance providers automatically renew your private healthcare cover, in which case you don’t need to do anything.

However, it’s a good idea to run a health insurance comparison when your policy is ending. This could help ensure you’re still getting the cheapest deal for the cover you need.

You’ll usually need to be over 18 to take out your own policy, but anyone younger can normally be added to a family policy.

There can also be an upper age limit for private health insurance. Even if there isn’t, you’ll typically pay more the older you are.

Like many insurance products, you can normally save by paying for health insurance annually, rather than monthly. But it depends on your insurance provider. They should tell you which way works out cheapest.

If the organisation you work for offers private health insurance as part of your benefits package, you might not need extra medical cover.

However, you might find there’s a limit on the cover or it may not cover your whole family.

It’s worth remembering that any insurance you get through work will only cover you for as long as you work there and will end as soon as you leave.

If you don’t have any pre-existing conditions, you don’t usually need a medical to get cover.

You’ll just need to fill out a medical history form and choose your level of cover. Some health plans might offer you a general health assessment if you want one. 

However, you may be required to take a medical before you can get cover if:

• You’re older
• You have a pre-existing condition, like diabetes or epilepsy
• You lead an unhealthy lifestyle.

Not always – you can get private healthcare treatment without a referral from your GP.

However, some insurance providers won’t cover your treatment without a GP referral, so check first if you’re planning to claim.

If your private medical insurance includes GP services, you should be able to get an appointment very quickly. Sometimes you can get a private GP appointment on the same day.

Inpatient care refers to any treatment that requires a stay in a hospital or clinic for at least one night.

Outpatient care refers to treatments or tests that don’t require you to be admitted to hospital – for example, minor diagnostic tests such as an x-ray, or physiotherapy sessions.

Private health insurance takes care of your medical treatment if you fall ill, while critical illness cover offers extra financial help if you develop one of the critical illnesses listed in the policy. For example, it can cover loss of income if you’re unable to work.

These policies fulfil different needs. Private health insurance is often a one-year policy, while critical illness cover is usually bought for the long term.

No, health insurance policies are designed to offer cover in the UK only.

If you need cover abroad for a short trip, choose a travel insurance policy with good medical care to cover you for accidents and emergencies.

If you spend a lot of time abroad, you might want to consider international health insurance. For example, if you work overseas or have a holiday home and spend part of the year there. 

Some providers offer private health insurance plans for home and abroad, but you may have to pay more for your premium.

If your employer provides health insurance, it’s considered a ‘benefit in kind’, which means it’s not tax deductible. Your employer should work out how much tax you owe for your health insurance premiums and deduct it from your pay.

If you’re an employer, you’ll need to complete a P11D form for each of your employees. You’ll need to state the benefits they’ve received and submit the forms to HM Revenue & Customs (HRMC).

There are some exceptions for small companies – for example, where it could be considered a business expense. Your insurance provider should be able to tell you if you’re eligible for this exemption, or you can check with HMRC.

When you buy a policy, you can choose how much excess you pay – that is, how much you’ll contribute to the cost of treatment if you make a claim.

Depending on your insurance provider, you could set your excess at zero, £100, £500 or even £1,000. The higher your excess, the lower your premium is likely to be.

You’ll usually pay an excess on a claim once per person, per policy year – although some providers charge each time you claim. Others may offer you both options.

Always read your policy terms and conditions so you’re clear about when you’ll have to pay an excess and how much it will be. 

A pre-existing condition is anything you’ve previously had medical treatment for.

Common conditions include diabetes, heart disease and asthma. Most insurance providers count any condition you’ve had symptoms or treatment for in the past five years. This could also include conditions diagnosed more than five years ago.
 
Not all providers set the limit at five years, though, so read your policy documents carefully and compare the options before buying. 

The difference between full medical and moratorium underwriting is how insurance providers look at pre-existing conditions before offering cover.

If you choose full medical underwriting, you’ll fill in a questionnaire about your health when you apply for insurance. Your insurance provider might also want to speak to your doctor. They can then give you a clear-cut answer on which conditions they’ll cover and which they won’t – or which you’ll have to pay extra to cover.

With moratorium underwriting, you won’t provide any details of your medical history upfront. Instead, your provider will only investigate the details of any pre-existing medical conditions if you need to make a claim. At that point, they’ll decide whether to cover you.

Some private health insurance providers offer a no-claims discount. Just as with car insurance, every year you don’t make a claim gives you an extra year of no-claims discount. This could reduce the cost of your premium when you renew it.

If you want a no-claims discount on your private health insurance, look for this feature when comparing providers.

To find the best health insurance for you, it’s always worth comparing a variety of policies to see which offer the features you need, at a price you can afford.

What’s best for someone else might not be right for you, so you’ll need to consider your personal circumstances and what you want from your policy.