Health insurance, often known as private medical insurance, isn’t as popular in the UK as in some other countries, so there are often misconceptions about it.
This can lead to some confusion about who health insurance is suitable for and what it does, which in turn can put people off who might benefit from getting a policy.
If you are considering getting health insurance or are just curious about it, here we debunk six common private health insurance myths to help you get to grips with exactly how it works.
Contents
- Having private health insurance means I can’t use the NHS
- Private health insurance only covers the cost of medical treatment
- Setting up private health insurance is too complicated
- Private health insurance is too expensive
- I don’t need private health insurance because I am healthy
- I can’t get private health insurance because of my medical condition
- Where to buy private medical insurance
1. Having private health insurance means I can’t use the NHS
You might assume that by getting out a health insurance policy, you are effectively giving up your right to use public healthcare, but this couldn’t be further from the truth.
There’s no binary choice between having health insurance and using the NHS. As long as you ordinarily reside in the UK, you are free to go through the public healthcare system even while you have active health insurance. You will still be registered to your GP, and if you get sick or have a health concern you can go to them as your first course of action, and then decide from there if you would like to proceed privately or via the NHS.
It won’t affect your private policy if you decide to use the NHS either. In fact, some health insurance policies come with a “six week wait” option, which stipulates that you try going through public healthcare first for any new medical issues, and only turn to private treatment if the NHS waiting list is six weeks or longer. Going for this option tends to make the premiums that you pay cheaper.
2. Private health insurance only covers the cost of medical treatment
The level of cover provided by your health insurance will depend on the kind of policy you take out, but many policies cover more than just standard treatment itself. For instance, health insurance can cover:
- Screenings, tests and scans
- Physiotherapy
- Mental health and wellbeing services
- Cancer care
- Dentistry
- Optical care
- Certain alternative medicines (such as osteopathy and chiropody)
Some of these may be included in the default policy, while others may be available as optional add-ons. Compare options carefully to find a policy that suits your needs, and read it carefully so you know exactly what you’re covered for.
3. Setting up private health insurance is too complicated
Nobody likes having to do a load of admin and jump through hoops to set up an insurance policy. You might also be put off if you’re worried about particularly personal questions about your medical history.
However, there are types of health insurance that are very quick and easy to set up, with few medical questions involved.
Many providers offer the choice between so-called ‘moratorium’ underwriting or full medical underwriting. If you opt for the former, you can have your policy set up on the same day, sometimes within the hour. The amount of medical information you’ll be expected to give is limited to a few “yes or no” questions, and the overall process is very straightforward. Opting for a moratorium policy does mean that checks may have to be carried out in the event that you make a claim, however.
Full medical underwriting on the other hand involves making a lengthy application, providing medical information and potentially giving the provider permission to consult your GP, so this usually takes longer to set up. However, this significantly simplifies the claims process itself, and gives you more detail as to what exactly is covered by your policy, as your provider will already have everything they need from you.
4. Private health insurance is too expensive
Though private health insurance is sometimes perceived as a lifestyle choice exclusively for the wealthy, it is more accessible than you may think. Of course, the exact cost of cover can vary hugely, depending on provider, policy, and your personal situation, but a policy may cost less than some other forms of insurance.
If you believe you may benefit from a policy, make sure to look at the rates available to you before writing it off as an unnecessary luxury. After all, you can’t put a price on your health, and you may find that premiums are more affordable than you expected.
Read more about the cost of health insurance and ways to reduce the premiums you pay in our article How much does health insurance cost?
5. I don’t need private health insurance because I am healthy
If you are in good health, you may not think you’d benefit from private health insurance. However, you might actually be in the best position to take out a policy.
One reason is that health insurance simply tends to cost less the younger and healthier you are. However, the main reason is that the majority of health insurance policies only cover illnesses and conditions that emerge after you get the policy out. So, if you develop a medical problem or suffer an accident, you will already have taken precautions to cover the cost. We can’t predict when problems with our health will arise, but knowing you have a policy in place and being aware of what precisely it covers can hugely reduce the stress that comes with sudden medical issues.
Our article Do I need private health insurance? goes into more detail on health insurance and some of the reasons why you might consider taking out a policy.
6. I can’t get private health insurance because of my medical condition
Some people assume that they can’t get private health insurance because of a health issue they already have.
This is generally not true. You will likely have to inform the provider about any chronic health issues in your application and it can result in higher premiums. However, having a health problem or chronic issue at the time of application does not mean that your claim won’t be accepted.
What you must take into account is that any pre-existing or chronic health problems you have when you take the policy out will usually not be covered by your insurance. However, some policies will start covering the cost of treatment for a chronic health problem if you go a long time without experiencing any symptoms, or might cover treatment for an acute episode from a longer-term issue. You should carefully check what is covered by any policy that you are contemplating and see what the provider’s approach to long-term conditions is.
Where to buy private medical insurance
There are two main ways to buy private medical insurance.
You can either go directly to a health insurance provider or you can ask a health insurance broker or advisor to help you find the right cover to suit your needs.
It might seem that buying private health insurance online is the cheapest and quickest option, but there are so many terms and conditions in private health insurance policies that it’s usually a good idea to seek professional advice on the best option to suit your needs.
Rest Less Money is on Instagram! Check out our account and give us a follow @rest_less_uk_money for all the latest Money News, updated daily.