Different Health Insurance Options

Health insurance basically covers you for unforeseen health problems. It sounds straightforward doesn't it but the problem is that there are so many different companies who offer different levels of cover and within this there are many other options that can leave you confused. It can be difficult to negotiate the industry but with a little bit of research and emersion in the topic you can be sure to get the best medical insurance policy for you.

Over the coming weeks we will be looking at the different options available.

1) Levels of Cover
Most medical insurance companies offer three levels of cover starting with a basic level. The higher the level the greater the amount of cover.

2) 6 week option
Some companies offer this. You can choose to wait for six weeks to see if your treatment/surgery becomes available on the NHS. If not, you can have private treatment. This option means that you pay less for your premiums.

3) Hospitals
Different health insurance companies operate within different hospital networks. Some have more hospitals available to them and can offer you different hospital networks and charge you accordingly. PruHealth for example have National, London and London Premier hospital options which incur different charges.

4) Co-payment
This involves paying for part of your treatment. It reduces your monthly premiums. The Exeter Friendly Society offers a policy called Shared Care where you can pay for 10%, 25%, 50% of your treatment costs.

5) Full underwriting/moratorium
Different companies offer different ways of underwriting your policy. Fully underwritten policies assess your health and lifestyle at the start. This means that any pre-existing conditions are eliminated from your cover straight away. Moratorium policies only assess you once you have made a claim. They tend to be less expensive but claims take longer to action.

6) Excess
There are many levels of excess available including companies which allow you to pay huge excesses but that then give you unlimited cover.

7) No claims bonus
Not all companies offer this. Those that do offer a no claims discount reduce your premium the following year if you have not made a claim. It is a fairly recent and contentious area which some suggest deters people from making claims and this could be detrimental to their health.

8) Rewards for Healthy Behaviour
Some companies offer you incentive to get healthy by reducing your premium if you take preventative health care measures.

9) Specific Policies
There are specific policies which provide more specialist types of cover. Child, Cancer Care and Student health insurance policies are examples of this.

10) You or the Insurance company?
Most insurance companies pay your consultant and hospital bills for you but others pay you the money and enable you to do what you want with it.