CLOSE TO HALF-A-MILLION NEW CUSTOMERS BOUGHT PRIVATE HEALTH CARE IN 2022

Mounting pressures on the National Health Service since COVID-19 have left many concerned and in fear of a lack of access to GP care and long waiting times for treatment of more severe illnesses.

Whilst many people receive excellent medical treatment from the NHS, media reports of strained services alongside striking nurses and ambulance workers have weakened public confidence.

Last year 480,000 new Private Medical Insurance (PMI) were purchased from the three largest UK insurers, Bupa, Aviva and Vitality. This rise in number shows that PMI has become a financial priority for many people who are not prepared to have their access to the health service compromised.

With a range of Private Medical Care plans available at different price points, Financial Advisers are seeing new demand for advice in selecting the right plan, in particular from those buying medical insurance for the first time. Once considered a luxury financial product, PMI is no longer an insurance policy afforded only by the wealthy.

What is Private Medical Insurance, and what does it cover?

Private medical insurance typically falls into three main types of insurance policy. The most comprehensive policy covers both diagnosis and treatment privately. A mid-range policy often offers all the same benefits, but there will be excess payments for outpatient or mental health services. A lost cost policy typically only provides in-patient treatment when the NHS offers a diagnosis.

Most policies include:

• Treatment in private hospitals
• Private consultations
• Physiotherapy for muscle, bone or joint conditions
• Outpatient care includes scans, tests, x-rays and hospital

More comprehensive policies may give some of these additional benefits:

• In-patient and day-patient treatment
• NHS hospital cash benefit, if you decide not to use the private option for treatment
• Childbirth cash benefit

An additional typical benefit is a 24-hour phone-based service which enables you to access health advice from a trained professional, typically a nurse. They also offer access to a doctor should you need it using a digital platform like a video call.

What should I know before I buy?

The most crucial point to be aware of is that pre-existing or diagnosed conditions are never covered. If you have been diagnosed with an illness, your new Private Medical Insurance policy will not pay for treatment, even if you have not yet started a treatment or care plan.

Policies also vary from provider to provider, with some companies providing more significant benefits in certain areas than in others. It is essential to speak to an Adviser who is knowledgeable about the range of policies available and can listen to your specific needs and compare benefits and premiums.

Cost can be the deciding factor for many people, and matching the right level of cover to meet your budget is the key. But there can be flexibility: with some providers, you can increase the excess premiums on your policy in return for lower premiums. Often there may be a no-claims discount applied when you don’t need to use any services. Premiums are not fixed and typically increase yearly.

You can cancel your Private Medical Insurance at any point without penalty. If you cancel, then the cover ends immediately. If you go on to buy a new policy, it will not cover or treat any previous illnesses or conditions.

If premium payments are not maintained, the benefits of the plan will be put at risk. If premium payments cease altogether, the benefits of the plan will cease. The cover may be less than you need if you do not review it regularly.