1) How much do you have to spend?
Health insurance policies vary a great deal in how much they cost. In general the more comprehensive a policy is the more expensive it is. In other words you get what you pay for. However it is worth hunting around for the best deals available.
Finding the right balance of cover and affordability is crucial. There is no point having a policy that you cannot afford but have committed to. On the other hand there is no point finding that you are not covered for all your needs should you become ill even though you could have afforded a more expensive level of cover.
Work out your costs. Find out what can you afford and then get the best cover for that amount. There are different cost reducing options available if you are looking for great cover at reduced cost. These include:
- Six week plans
- Co-payment options
- Increasing your excess
- Paying for a year of cover upfront
- Picking some ‘options’ instead of others
- Using a health insurance provider, Freedom Healthnet, for example, that allows you to arrange your inpatient treatment in exchange for a cash payment
2) What are your expectations of medical insurance?
This is a very important question. When people are first looking for health insurance they are often surprised not by what is included in the policies out there but what is not included. These are known as exclusions. Read all small print carefully before committing to any policy. Many things are not covered by any insurance company, including:
- Pregnancy and complications of pregnancy
- HIV/Aids
- Chronic illness
- Conditions you have recently suffered from
- Alcoholism
- Drug abuse
- Cosmetic surgery
- injuries from professional sports
- injury from dangerous sports
Try and match your expectations to what is available. Here are some of the things that are not covered in every policy but are covered in some:
- Psychiatric treatment
- Alternative treatments
- Full cancer cover
- Pregnant women
3) How much choice do you want?
One of the great things about health insurance is that it gives you a greater element of choice. However not all health insurers are equal in this respect and some offer you a greater degree of freedom than others. Some insurance companies for example reduce the cost of their policies by including a six week option. If you are happy to go with the NHS for treatment then this is a great policy for you. You wait for six weeks to see whether you can be treated with the NHS and if you cannot then you can go privately. Axa PPP Healthcare, for example offer a six week option policy.
Choosing your own consultant and hospital is another element of choice that can be restricted with some health insurance companies. Some insurers have lists of hospitals that you can use and others are more restricted that others.