1. What is it? Private health insurance (Also known as private medical insurance or PMI) provides cover for the costs associated with private medical treatment for curable short term medical conditions.

Private health insurance will cover the cost of surgery, accommodation, specialists and nursing at a private hospital or private ward in an NHS hospital. Two levels of cover are normally available comprehensive or standard cover.

2. Know Your Coverage. Comprehensive plans provide high levels of cover which normally include treatment on an inpatient basis but also provide outpatient cover. Comprehensive cover plans can also provide cover for personal accident, maternity and travel.
Standard health insurance policies normally provide cover for limited outpatient treatment on an inpatient day care basis only. Private health insurance does not normally provide cover for chronic or critical illness which cannot be cured such as Parkinson's Disease, Cystic Fibrosis or Asthma. Many private health insurance policies will cover the cost of treatment for stabilising a patients condition and returning them to their previous level of health if possible.

3. What's Excluded? Exclusions from a policy are one of the most important areas to fully understand and consider when taking out private health insurance cover after the Moratorium Clause of the cover is understood.

All health insurance policies contain a list of general exclusions from cover. Some insurance companies will have more exclusions than others or place limits on certain benefits offered. Benefits which commonly have financial limits placed on them are maternity and routine dental cover. Common exclusions from health insurance policies are :

AIDS or HIV, Drug Abuse, Alcoholism, Dental Treatment, Dangerous Sports, GP Services, Infertility Treatment, Sterilisation Treatment, Normal Pregnancy Cover, Cosmetic Surgery and Accident & Emmergency Treatment.

As well as general exclusions, others may be made according to the people who are to be covered. Recent medical conditions or in some cases conditions going back up to five years or more may be excluded from cover by some insurance companies

3. Know Your Terms. Private health insurance policies are provided on an annual basis. Payments for the policy can be made monthly or annually. Some insurers will accept new customers at any age but most place upper limits at 65 to 75 years old.
When you take out a health insurance policy your insurer will normally continue to offer cover, year on year. However your premium will increase with your age.

4. Know your limitations. Unfortunately most health insurance plans do not pay for the treatment of pre existing medical conditions. These can be defined as a medical condition which has been diagnosed, for which symptoms have occurred and or required treatment for up to 5 years before the plan has been taken out.

5. Insurance costs a lot but having none could cost a great deal more. The main factor which effect premiums is your age. As your health insurance premiums rises over time, a premium you could afford when you were 30 may not be unaffordable to you when you are 60. In addition to this new treatments become available involving new technology and drugs which can also cause the cost of cover to increase. Health Insurance companies increase premiums on a yearly basis in line with any increased costs. Government legislation can also affect your premiums, a good example of this is if tax incentives to plans are allowed or excluded.

6. Demand discounts. It is possible to receive a discount on the price of your health insurance policy by agreeing to a voluntary excess in the event of making a claim. You can also save money by paying for your policy annually. As with most other types of insurance many insurers will offer a no claims discount on health insurance policies.

7. Study the lists. For the purposes of private health insurance In the UK, insurance companies grade hospitals according to their perceived quality : A, B or C. Grade A hospitals are best and most expensive. A Lists of hospitals covered under a private health insurance plan are normally made available with your quotation for cover. Make sure you study the list carefully before taking out cover.
Some insurers have hospitals they prefer which may not suit you. Consider the distance you will have to travel and the reputations of the hospitals offered in your quotation for private health insurance.


8. How to claim, before claiming. The vast majority of Health insurance companies send an introductory pack to new policy holders containing an insurance certificate, help line numbers, claims forms and a full list of contact numbers. Most insurance companies require all treatments to be pre authorised. This means that you have to contact their help lines before arranging any treatment. In most cases the insurance companies will agree with the hospital to pay the bills themselves less any excess that is applicable to the policy which you will have to pay yourself.