In 2010, 8% of the people in the UK took out a private health insurance policy either as private customers or through their jobs. The British press recently reported that even a third of GPs (doctors) have private medical insurance.
People are taking out these policies because it gives them peace of mind - they can get treatment for acute problems at a time and place that suits them, without having to wait, and often in more comfortable hospitals than those available on the NHS.
It may be that you get offered private health cover when you start a job, because employers often offer it as part of your salary, either because they see the benefit of a healthy workforce, or just choose to offer it as a type of bonus. While it can’t do any harm to have something that someone else is paying for, be aware that you will get taxed on health insurance as an income.
If however you are thinking about getting health insurance for yourself, you need to be aware of some of the facts:
Levels of Cover
Different levels of cover are available from a market of many competing companies. All of these companies offer different benefits, so you will have to do a bit of research before deciding which policy will suit you. The cost will increase with the level of cover you want, your age, and if you are a heavy smoker/drinker. Most companies can arrange for an adviser to visit you, free of charge, and explain the policies to you in greater detail.
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Because they are insurance companies, not care providers, they will judge your case by merit. This means that you will not be covered for any existing illness (known as pre-existing conditions) when you take out your policy. In very few cases they may decide not insure you at all, if you have a very problematic medical history.
Private healthcare providers also have a list of conditions that they will not cover, such as, pregnancy, drug abuse, infertility, prescriptions, dentistry, alcohol abuse, AIDS, chronic diseases such as asthma or diabetes, cosmetic surgery, and more, depending on the insurer you use. Often, insurance is only used for short-term curable illnesses, with the rest of your care available free on the NHS.
Once you have the insurance, if you need to make a claim, it is important that you consult your health insurance company before starting any treatment to make sure they will pay for it.
So, once you understand the basics, just like any other insurance, it’s all about getting the best deal for your money.
Cost of Insurance
How much you have to pay depends on how much cover you want .You might want to be treated at the hospitals that get the best results, and be insured against every possible ailment. But if you sacrifice the level of cover, of course, the cost will come down. Many insurers are now running a no claims system similar to that used in car insurance, where the cost of the policy comes down each year that you don’t make a claim.
If health insurance is something that you want, but only in the distant future, you should consider that as you get older, fewer companies will take you on and the cost will increase. It could be an advantage to start a policy earlier, and then earn no claims which will help bring down the cost of your policy in the future.
Insurers also offer packages for married couples, as well as for the whole family, which could give you peace of mind, at the same time as making a saving by buying collectively.
By Matt Taylor
Health 
