Things to consider when choosing private health insurance

How does private health insurance work?

In the UK, the National Health Service (NHS) provides treatment free at the point of use to all UK residents. Private healthcare doesn’t replace the NHS, and you’ll still be able to use the NHS for medical care your private health insurance doesn’t cover. Instead, private health insurance works alongside the NHS. It can offer you different options, and may give you more freedom over where and when you have your treatment.

With private health insurance, you pay a monthly or annual premium, then if you need treatment, your plan will cover the cost (so long as that particular treatment is covered under your plan). What you’re covered for will depend on the health insurer, your individual circumstances and the plan you choose.

You can find out more in our guide:

• How does health insurance work?

Questions to ask yourself when choosing a health insurer

If you decide to take out private health insurance, it’s a good idea to check and compare what different providers offer.

Make sure you know what’s covered and how each insurer covers it. You might be able to get sample copies of policy documents on the insurer’s website to read before buying – but remember, if you buy, your terms and conditions may be different. If you’re not sure about something, the insurer will be able to answer any questions.

See what you get with AXA Health’s health insurance

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What’s my budget?

The cost of private medical insurance can vary a lot depending on your age, location, lifestyle and the cover you choose. It’s worth checking what options are available before you commit to a plan.

There may be ways you can control the cost of your health insurance. 

Which treatments or conditions do I want my health insurance to cover?

What’s covered will vary between insurers, so if it’s important to you to have cover for something specific – such as diagnostic tests, cancer or mental health issues – check how your insurer covers it.

With AXA Health, you can choose to include cover for:

• Outpatient diagnosis and care
• Inpatient and day patient care
• Cancer care
• Mental health care

You can also opt to get money back towards fees charged by your dentist or optician.

Will I get a no claims discount if I don’t claim?

If you don’t claim during a policy year, your health insurer may offer a no claims discount (NCD). For each year you don’t claim, your NCD gets bigger, so you save more. If you make a claim, your discount gets smaller and you save less.

It’s worth checking how different health insurers treat NCDs. Some insurers will let you protect your no claims discount for a small fee. With some insurers, not all claims will affect your NCD. With an AXA Health Plan, if your total claims paid for the year are less than £250, your no claims discount will stay the same. That means you may be able to see a specialist for a consultation, and it won’t affect your premium next year.

Are there any limits on what I can claim for?

Health insurers may have limits on some of the things they cover. For example, there may be a limit on how much you can claim for outpatient consultations or specific treatments.

Would I be happy if my insurer sources my hospital or specialist, or do I want to choose my own?

With some health insurers and plans you may have to see a specialist or use a hospital on their list of providers, or you may need to use a specialist or hospital that your insurer sources for you. If being able to choose a specialist or hospital is important to you, make sure you check that the plan you choose lets you do this.

How much would I be happy paying towards the cost of investigations and treatment?

With most health insurers you can choose to pay an excess. An excess is an amount you agree to pay each policy year towards the cost of any claims you make. It’s a good idea to think about how much you’re prepared to pay towards the cost of treatment. The higher the excess you choose, the lower your premium will be, but you’ll pay more upfront if you need to claim.

Health insurance excesses usually work differently from the excesses you might be used to paying with your car or home insurance.

Do I need cover for family members too?

You can often add family members to your health insurance, giving you the added peace of mind of knowing they can also access care quickly. Who you can add and the way they’re covered can vary between health insurers.

With AXA Health, you can include your family on your policy even if they live at different addresses. If you have a child living away at college or university, or a parent that lives down the road, they can also get fast access to specialist treatment if they need it.

Can anyone help me work out the right cover?  

If you’re not sure about what kind of health insurance you need, you might find it helpful to get advice from an independent financial adviser. If they’re independent and not linked to a particular provider, they’ll be able to give you unbiased advice and recommendations from a range of insurers.