Ten remedies to make health insurance cheaper

More than 6m people have lost faith in the NHS, and have opted for private medical insurance, also known as health insurance.

So clearly, peace of mind is worth paying for – but you need to make sure you are not paying more than you need to for the cover.

The team at Totally Money have done their bit, by negotiating an exclusive £50 cashback deal with its broker network.

But there are plenty of other things you can do to save money on healthcare.

1. Keep healthy to reduce your premiums

Premiums have gone up dramatically in the last 10 years, thanks to medical advances, and they will increase with age. But smoking or drinking heavily will also help to push your premiums up.

2. Use a broker

Brokers are the best way to search the whole market for a deal. If you ask, many will also reduce their commission to give you a bigger discount.

Health insurance is notoriously difficult to buy and make sure you have the right cover for you. Many companies will exclude pre-existing conditions, and the broker is particularly helpful if you are in this position, and you have a pre-existing condition you would like to eventually be considered in the policy.

The other reason to use a broker is to get expert advice – the policy is only as good as the claims experience, and when you are ill, you do not want to find out that is left wanting.

3. Check whether your employer offers cover

If your employer offers cover as part of your employment package, take it. It will usually be cheaper, and usually has ‘moratorium underwriting’ so you do not need to declare any pre-existing conditions because the insurer expects to ‘win some, lose some’ across the whole company’s cover. Check that this is the case though with your company’s human resources department.

Also, check your tax position, as it could be considered a ‘benefit in kind’.

4. Pay as much as you can yourself

Go for the highest excess you can afford – if you can cover the first £5,000 of any claim, for example, then you will have cut your premiums to a minimum. It would mean that for many minor operations, you would face paying for the whole treatment yourself.

5. Get a joint or family policy

If you need to cover your entire family, then there are policies to cover you all for a single premium.

6. Shop around

Check a variety of policies before you buy one, and use a broker if you want someone else to do the legwork. Getting a broker to compare policies is wise, as the small print in each can easily trip you up.

7. Get a policy that covers where the NHS fails

Some policies will offer cover to dovetail where the NHS is unable to deal with a condition within a period of time, usually six weeks. These can be cheaper, but be sure you are prepared to wait if you need medical help.

8. Consider paying annually rather than monthly

If you can afford it, paying your full annual premium in one go can get you a discount on the cost. Your broker should be able to help suggest the companies that will be most effective for this strategy.

9. Budget cover

Many companies still offer these policies – BUPA, Aviva, Bright Grey – but they are no longer marketed as ‘budget’ policies. Instead, these companies will now offer you a ‘menu’ of cover that starts at the lowest level.

If you want to just have cover that will ensure you get in-patient treatment at a private hospital, with any diagnostic tests done on the NHS, then you would simply get the lowest – or core – cover. Taking this will reduce your premiums by as much as 70 per cent, and will ensure you get a private room and decent hospital food if the worst should happen.

This is ideal if you are young and healthy, but if you are older and have pre-existing conditions, it is probably not a great idea. A broker will help you decide.

10. Always read the small print

You must read the small print to be sure what you need is covered. The best way to do this is to buy through a broker rather than direct – we always recommend this, which is why Totally Money uses the broker model.

Most policies will exclude chronic conditions. For example, you will not be able to claim for chronic conditions such as asthma and Multiple Sclerosis, and most companies exclude conditions you have suffered from in the last five years.