Is private health insurance right for you? Important considerations to make for your family

In the UK, citizens are fortunate to have access to the NHS, which provides free healthcare at the point of use.

However, with 14% of UK adults now opting for private health insurance (as reported by The Actuary) a growing number of people are choosing to complement their NHS access with private care.

But when is private health insurance the right choice for your family? It can be a tricky question to answer as it depends on your personal circumstances.

Here, we explore the benefits of private health insurance and some considerations you may want to make before diving in.

Private health insurance can act as a supplement to comprehensive NHS care

Private health insurance, sometimes also called private medical insurance (PMI), can be accessed in addition to, or sometimes instead of, NHS healthcare. It can give you access to private hospitals and specialists for certain treatments, often for acute conditions (short-term) rather than chronic issues (long-term).

It’s important to understand that PMI is not designed to replace the NHS. For emergencies, serious accidents, or chronic conditions, the NHS remains the UK’s primary provider.

However, private insurance can offer an alternative for non-emergency treatments that allows you to bypass some of the pressures on the public health system.

There are plenty of reasons to consider taking out private medical insurance

Families choose private health insurance for a variety of reasons, primarily centred around convenience and choice.

• Shorter waiting times. This is often the biggest benefit. While the NHS aims to provide a comprehensive service and its wait times have recently hit a two-year low, waiting lists for consultations, diagnostic tests, and certain procedures can be long, especially since the pandemic. PMI may allow you to access some healthcare services more quickly.
• Quick access to specialists. If you have a specific health concern, private insurance often allows for faster referrals to specialists, which can speed up your diagnosis and treatment. This can be particularly reassuring when dealing with your children’s health.
• Comfort and privacy. While you may have some privacy in an NHS hospital, it’s not guaranteed. Private hospitals typically offer rooms with en suite facilities, flexible visiting hours, and a more “hotel-like” environment. This can be beneficial during a stressful time, but it’s important to note that the actual medical support you’d receive is likely to be similar.
• Access to treatments not routinely available on the NHS. While less common as a concern, some policies may offer access to treatments that aren’t yet widely available on the NHS, though this is something to thoroughly check with any policy.

Ultimately, with PMI, you often have more flexibility and choice. Coupled with potentially faster referral and treatment times, this could be of great benefit to you.

Private medical insurance isn’t a catch-all and has some drawbacks

While the benefits can be appealing, PMI comes with several important considerations, particularly for families. Here are three key factors to consider.

1. High monthly costs

This is perhaps the most significant factor, as private health insurance premiums can be substantial. The cost will depend on several factors.

• Age. The older you are, the higher your premiums are likely to be.
• Medical history. Pre-existing conditions can be excluded from cover, or only covered after a waiting period.
• Level of cover. Policies can differ greatly, from basic plans only covering inpatient treatment to comprehensive plans including outpatient consultations, therapies, and mental health support.
• Excess. Just like car insurance, you can often choose to pay an excess (an upfront amount) when you make a claim, which can reduce your monthly premium.

Remember, if you’re covering multiple family members, the cost of private health insurance could increase significantly.

2. Exclusions and limitations

It’s important to fully understand what your policy does not cover. As mentioned above, pre-existing conditions are a common exclusion.

Chronic conditions, emergency care, normal pregnancies, and cosmetic surgery are also typically not covered. Be sure to read your policy documents carefully to avoid any surprises.

3. Renewals and premium increases

Like most types of insurance, premiums typically increase each year, particularly as you and your family members get older or if you make a claim. It’s important to factor these potential increases into your long-term budget.

Making the right choice for your family

Deciding whether PMI is right for your family involves weighing up the potential benefits against any financial commitments.

Ultimately, private health insurance can offer peace of mind, faster access to treatments, and a greater degree of choice and comfort for your family.

However, it is a financial commitment and therefore requires careful consideration to ensure you choose a policy that meets your needs and expectations

We can help with this.

Email enquiries@jesellars.co.uk or call 01934 875 919 to discuss your options for private medical care and what we can do for you.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.