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Purchasing Private Medical Insurance

Published Tuesday, October 28, 2008 by bloggerblognet84084 | E-mail this post

If you have private medical insurance you don't have to wait months to be treated on the NHS. You pay a monthly or yearly premium in exchange for cover for the cost of private medical treatment for curable short-term illnesses or injuries, otherwise known as acute conditions.

A long list of illnesses and conditions aren't covered by private medical insurance, including drug abuse, self-inflicted injuries, pregnancy, cosmetic surgery, and organ transplants. For a full list of exclusions, check the insurer's key features leaflet. Treatment by accident and emergency isn't covered under private medical insurance as private hospitals don't have the facilities to cope with it.

Accounting for the cost

Private Medical Insurance can be extremely expensive and you should be prepared for your premium to rise each year, usually above the rate of general inflation. The cost is the result of the increasing number of people claiming for private medical treatment and the increasingly sophisticated and expensive procedures available. According to the Association of British Insurers (ABI) a hip replacement - a common procedure - can cost around 7,000, for example.

The number of claims you make doesn't influence your premiums, unless your cover includes a no-claims discount. However, your premiums will increase as you get older because you are more likely to make a claim. A 45-year-old should expect to pay 25 per cent higher premiums than a 35-year-old, according to the ABI. A 65-year-old would pay more than twice the premium of a 45-year-old.

Your premiums depend on your level of cover: A limited policy costs less than a comprehensive one. Most schemes cover in-patient and day-patient treatment, but not all offer outpatient treatment. Consider how important this is to you when choosing a policy.

Declaring your medical history

The most common type of policy requires you to fill out a form with details of your medical history. Your doctor may be contacted for further information and you won't be covered for pre-existing conditions.

An alternative to declaring your medical history is the moratorium option, which is offered by a number of insurers. You don't have to fill in a medical history form, but if treatment for a pre-existing condition (something you suffered from in the past five years) is required within two years after the policy starts, the costs are not covered.

It is down to you to declare any medical conditions you have suffered from in the past five years if you don't opt for the moratorium. Resist the temptation to conceal this information, as the insurer may refuse to pay out if you make a claim.

If you've got friends or family who are financially literate, you could ask them for help. But unless they are experienced advisers themselves, and know all the ins and outs of your particular personal finance circumstances, they are not in a position to recommend the best products to you. For that you need a qualified private medical insurance adviser.

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Purchasing Private Medical Insurance

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