Private health insurance can speed up access to medical attention and offer invaluable peace of mind; however, it is an additional expense each month. According to Statista, 22% of UK adults now have private healthcare, meaning figures have nearly doubled since 2019.
The decision of whether or not to take out private health insurance will usually come down to an individual’s financial situation and priorities. With this in mind, this article will reveal the advantages and disadvantages of taking out health cover insurance.
Why is Health Insurance Important?
Health insurance is becoming increasingly important for many people as we reassess our priorities in a post-COVID world. People are starting to become more aware about personal wellbeing and health and are choosing to invest their money on taking better care of themselves.
Isolated private treatments can be hugely unaffordable; however, taking out a private health insurance plan allows a fixed amount of money to be paid per month to cover healthcare costs. This negates the need to come up with a huge lump sum to pay for a treatment.
Health insurance is also becoming increasingly important as a company benefit, with many employees deliberately choosing to work for companies who can offer them comprehensive insurance plans.
For those who are self-employed, private health care is a way of getting back on your feet faster and reducing the amount of time you are out of work.
What are the Advantages of Private Health Insurance?
There are many reasons why people choose to take out private health insurance policies including the following:
Coverage – Private health insurance can cover, fully or partly, certain healthcare expenses. This means that by paying a fixed amount of money monthly or annually, you can cover doctor consultation, emergency room visits or even specialist treatments. Certain policies could also cover large medical bills such as surgery.
Choice – Private coverage usually offers the patient more choice. For example, depending on the company, you can choose a location that is the most convenient for you, choose a time that suits you best and even choose the doctor for your consultation.
Speed – One of the main advantages of private health insurance is that you benefit from shorter wait times for appointments. Public doctors usually have lengthy waiting lists with some spanning multiple months.
What are the Disadvantages of Private Health Insurance?
Private health insurance is not for everyone and there are reasons why some people may choose not to take out a private health insurance policy, including:
Cost – The greatest disadvantage of private health insurance is the cost making it inaccessible for many people. Depending on the policy chosen, private health insurance can cost thousands of pounds per year and even more for family coverage. Even after the policy, there are certain co-payments and prescriptions that need to be paid for.
Limitations – The majority of health insurance policies will not offer full coverage when it comes to certain conditions and diseases. That means that for some individuals, who have specific illnesses, they cannot receive private health insurance coverage and must be out of pocket for treatment and services.
Waiting period – The waiting period is the specified amount of time you must wait before making a claim under the health insurance policy. This means if you are planning to take health insurance only at the time of illness, it will not be possible.
Increase in premiums – Health insurance premiums will vary depending on an individual’s age and general physical state. According to Andrew Kettle from Warmable, “You should bear in mind that the premium amount varies significantly between buying a health policy at the age of 30 and buying one after the age of 50.”
