Arranging health insurance

Arranging health insurance can provide peace of mind in the event that you fall ill or are injured, so knowing what to look for when you compare policies is the key to getting the right cover for your needs.

What should I look for when I buy a policy?

When comparing policies you’ll need to consider:

Whether you want the policy to include access to a specialist as an out-patient – budget policies normally only provide cover for in-patient treatments.
Whether you’d like a choice of hospitals rather than access to a limited selection chosen by your insurance company.
Who you’d like to cover i.e. yourself only; yourself and your spouse or partner; or yourself and your family.
Whether you want cover for alternative therapies, for example acupuncture.
Whether you’d like access to additional benefits, such as nursing at home, a private ambulance, etc.
Whether you’d be willing to receive NHS treatment where it is available within 6-12 weeks.
What grade of hospital accommodation you’d prefer.

The cost of the policy will depend on the choices you make.

What other factors affect the cost of a health insurance policy?

Insurers will ask you whether you are a smoker – if you are then you will normally pay more for the policy than a non-smoker as tobacco use has proven links to conditions such as lung and throat cancer.

Insurers will also look at your age when calculating the cost of your policy. This is because people are more likely to need medical treatment as they get older.

Some insurers will allow you to choose from a range of excess amounts when you take out the policy (the excess is your contribution towards the claim); the higher you set the excess, the cheaper your premiums are likely to be. However, remember to always set the excess at an amount you can comfortably afford should you need to make a claim.

Will my premiums stay the same for the duration of the policy?

Whichever policy you choose, it is likely that your premiums will increase on an annual basis. This is because more people are claiming on their health insurance policies each year with some treatments now becoming routine e.g. hip replacements in older people (Source: Association of British Insurers). Similarly, as you get older your insurer will normally increase your premiums to reflect the fact that you are more likely to require medical treatment.

In addition, the advances in medicine mean that the complexity of tests and treatments is increasing, with more hospitals having access to sophisticated equipment and specialist staff – both of which come at a cost. To support these developments, insurers need to review the cost of the policies they offer.

Remember! If you stop paying your premiums your cover will stop.

Will I need to provide details of my medical history?

When you make a health insurance application the insurance company may accept it based on either a medical history declaration or ‘moratorium’.

Medical history declaration

If the insurer requests that you complete a medical history declaration then you will need to fill in a form giving full details of your medical history; this may result in the insurer requesting a medical report or Doctor’s letter.

Moratorium

Instead of asking you to provide details of your medical history the insurer will simply exclude cover for any pre-existing conditions, usually those that occurred within the past five years. Depending on the insurer, these conditions may become eligible for cover in the future providing that you have not had any symptoms or received treatment or advice for a continuous period. Some conditions will be classed as ‘chronic conditions’ and as a result they will never be covered.

What if I am disabled?

If you are disabled then you will still be eligible for cover, however in line with their stance on pre- existing medical conditions the insurer is within its rights to exclude cover for treatments that directly result from your disability.

Remember! Always declare all relevant information about your disability, that way the insurer can make an informed decision when underwriting the policy. Failure to do so could invalidate your right to make a claim.

For more information on insurance for disabled people, call the Association of British Insurers on 020 7600 3333 and ask for their information sheet ‘Insurance for disabled people’.

Where can I buy a health insurance policy?

You can buy a health insurance policy through a financial advisor, bank, building society or insurance company.

By using an online comparison site you can compare quotes from a number of different insurance companies with one search. This enables you to compare prices and see what is included in each policy before you buy, enabling you to find the right level of cover at a price that’s right for you.

Remember! The cheapest policy may not provide the right level of cover for your needs. By paying a little extra for your insurance it is usually possible to secure better cover and therefore get better value for money.

What if I change my mind?

If you do not receive full details of the policy terms when you buy the policy you will be entitled to a ‘cooling-off period’, which normally lasts 14-28 days. If you decide not to go ahead you will usually be entitled to a full refund of any premiums you’ve paid – providing you’ve not made a claim.

If you want to cancel your policy after the cooling off period then your insurance company does not have to refund the payments you’ve made.

Can I change insurance companies?

Although you can change insurance companies it’s important to remember that the new company may not cover any previous or existing medical conditions that your current company may cover.

Before changing insurance companies always check how the change may affect the cover you receive.

If your insurance company plans on making changes to your policy you will be provided with the details of the changes before you renew.

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