Switching Health Insurance Policies
Many UK residents are scratching their heads in disbelief as the renewals for their health insurance policies come due. The premiums have risen and in many cases by as much as 10%. Since having health insurance cover is vital, many people think they have no other choice but to pay the higher premiums. Such is not the case and there are ways of relieving this type of financial pain.
According to Steve Walker, the director of Medical Insurance Services, “Most people don’t want to get rid of private healthcare altogether, but they can’t afford the huge premium hikes.”
To help combat this problem and to help those facing the increases on their policies, Standard Life is one of the insurance providers that is planning to launch a lower cost health insurance plan in July.
Tesco is also set to release a more streamlined health insurance policy for its customers. This policy will cover the core medical treatments and will allow clients to include different options that they feel meets their needs in health insurance cover.
If you currently have a Healthcare Deposit Account with the National Deposit Friendly Society, you will soon have the option of being able to lock in your premiums for life, which means they will stay the same as long as you continue to renew your policy. The manner in which this process will work is that you will be able to mix and match your policy with a combination health insurance policy and a savings account. Half of the amount you pay in monthly premiums will go into the savings account to fund the health care you receive. You will not be paid any interest on this account, though. The other half of your payment will go towards paying for the amount of health insurance that you choose.
The monthly payments for such a health insurance policy from the National Deposit Friendly Society will range from £20 to £200 per month for each individual. If you are over the age of 50, however, the minimum monthly payment will be £50. Even this small amount could give you a policy worth £30,000 of medical coverage and up to £900 in dental and optical insurance cover. Whenever you make a claim on the policy, part of the money will come from the insurance policy and the rest will come from the amount you have built up in the savings account.
If your health insurance cover premiums have increased and you are thinking of switching providers, you should take the time to look around to see what is available for you. Talk to your existing insurance provider to explore the possibility of finding ways of lowering your premiums. There may be discounts that apply to you that you haven’t tapped into. You do have to look at what other insurance providers can do for you as well. Not all insurance providers charge the same rates and you may find one that is a lot less expensive and still meets your needs.
One couple from Bedfordshire, Maureen and Ray Burraway, shaved £50 per month off their health insurance policy when they switched from Standard Life to Bupa. In addition, the excess on the policy has been reduced from £1000 to £250.
As Mrs. Burraway, who is 63 years old, stated, “We have been with Standard Life for 16 years and we were horrified when our premiums shot up on renewal this month. Mine went from £85 to £92 a month and Ray’s from £118 to £128 a month. We hadn’t hit any significant birthdays that would cause the premiums to rise. I toyed with the idea of increasing the excess to £2,500 to reduce premiums, but it is a lot of money to pay for each claim, especially as we are getting older.”
The Burraways used Premier Choice medical brokers to help them find a lower cost policy with the same terms. Their payments are now lower than they have ever been, with Ray’s at £91 per month and Maureen’s at £83 per month.
Tags: health insurance costs, Social Issues, Bupa, Labor, age, health insurance premiums