Private Health Insurance
Types of private health insurance

There are various types of private health insurance provided by various companies and organisations. Although there are differences between them, there are also a large number of common factors.

The common factors

Put simply, private medical insurance (often abbreviated to PMI) works alongside the NHS to provide medical attention, but typically without the need for long waiting lists; travelling to a hospital that may not be convenient to you; and often in a more private environment.

The NHS provides services for urgent and critical medical treatment and is a source of national pride for many people.

It also can provide medical treatment for other situations where the condition is not major or life threatening but it is in this area of medical services that one may at times see extensive delays in obtaining an appointment with a specialist or sometimes, medical treatment.

Unfortunately, if you are in pain and perhaps struggling to lead a normal life while waiting for treatment, the knowledge that your condition is not ‘critical’ may be of little consolation to you. Time off work may mean a loss of income and being in pain or unable to move freely can mean that you’ll probably just want to be treated and as soon as possible – and this is where having PMI may be able to help.

Variations in the types of private health insurance

Your employers may provide hospital insurance through what is often referred to as a ‘company’ or ‘corporate scheme’. The benefits may be applicable to you and your immediate family such as your spouse and children.

You can also directly purchase health cover protection for yourself, you and your spouse or your family in total.

The level of cover provided by your policy will depend to some extent upon the amount you’re willing to pay for it and whom you are purchasing it from. Some policies may offer one or more variations of the following typical benefits:

• fast access to medical specialists;
• x-rays, surgery, scans, non-cosmetic dermatological skin tests;
• rapid treatment – typically in a private clinic or hospital with a private room;
• theatre staff costs if you have surgery (such as anaesthetists’ fees);
• discounted health screening;
• membership of fitness clubs etc.

Not every policy will provide all of the above as part of your standard package – some may offer individual benefits such as health club membership on a ‘reduced fee’ basis. You may also be able to opt to pay a bit more and get extra cover – such as treatment for psychiatric illnesses. (However, do note that some insurers do not cover psychiatric illness at all).

The cost

The cost of hospital insurance can also be flexible, with some providers offering discounted premiums if you:

• opt to have a waiting period before seeing someone (for example, for six weeks, in which time you may have been seen by the NHS);
• have a limited choice of hospitals (so, you use one of the hospitals on the provider’s list of approved hospitals rather than the one of your choice).

By being a little flexible, this means that you can often tailor a policy to meet your needs and your budget, making private health cover a viable option.

Variations may also exist in terms of private health insurance exclusions etc. This may need to be looked at closely as is the case with all insurance but PMI typically won’t cover situations arising from:

• drug and alcohol misuse;
• some forms of cosmetic surgery;
• normal pregnancy;
• accident and emergency treatment (such as following an accident);
• some pre-existing medical conditions or HIV/AIDS.

Private health insurance may offer you a very significant degree of freedom of choice and peace of mind. Finding out more would only take a few minutes and it could be a good investment of your time.