Most health insurance policies are modular (it’s also sometimes called private medical insurance). The policies offer ‘modules’ of benefits that can be added to a basic level of cover. Many people contact us because their lives have changed since they took a policy out. They want to talk through those modules – to understand exactly what they’re paying for – and see how removing one or other module affects their premiums.
Taking off those parts of your policy will definitely bring down the price of your premiums. But it’s important to bear in mind how much cover you’ll have as a result – you still want a policy that works for you – and the majority of insurers will not remove a module half way through your policy term.
Health insurance, like car insurance, usually offers the chance to pay an excess when you make a claim. Having a higher excess may bring down your premiums. Clearly, no-one can predict a serious illness or injury, but it’s still worth thinking about whether or not this is cost-effective.
For example, if your excess goes up from £100 to £250, and this saves £120 on your annual premium, it might not work out as an overall saving if you made a claim. You wouldn’t have saved £150 over the course of the year, so you’d be £30 out of pocket – if you made a claim.
Then again, it’s the option to make a claim that might give you greatest peace of mind overall. It’s all about balance. Our team of expert Healthcare Consultants can talk this through with you.
We can talk you through the optional benefits on your policy, to see if there’s anything you’d be happy to give up. Things like additional therapies cover, psychiatric cover, travel cover, and dental cover etc. As a regulated insurance broker, our advice is impartial. We won’t make a recommendation that’s not right for your situation.
The majority of insurers won’t remove these benefits half-way through a policy term, but you can usually take them off at renewal. It might not make a huge difference but, as they say, every little helps.
It’s also worth checking to see if you could reduce your level of outpatient cover.
Every insurer’s cover varies, but in general this includes things like consultations, diagnostic tests and physiotherapy – so it’s an important part of your private medical insurance policy. However, it’s something we can look at for you.
The greatest peace of mind comes from having a comprehensive policy in place, if you need to make a claim. But do you need to claim?
Claims will almost definitely push up your premiums at renewal, and you might be happy to use the NHS or pay for a small amount of treatment yourself.
If you’re going for a basic consultation, for example, and you’re confident it’s an everyday matter, then it might be worth using the NHS. The cost of a consultation could range anywhere from £100 – £250 or more, but your premiums might go up by more than that afterwards.
Most insurers don’t take the size of the claim into account. So, small value claims could end up costing a lot more in the long run if the insurer isn’t making a large contribution towards costs.
The best way to make sure you‘re getting the best value for money is to review your policy regularly. Everyone’s situation is slightly different, so, before we make a recommendation, we’ll ask you questions about what level of cover is important to you.