Personal Factors Affecting The Cost Of Health Insurance
There are a number of factors that can affect the amount you pay for Private Health Insurance. Some we have control over and others we don’t, and some are more obvious than others.
The Cost Increases With Age
Although it can’t be helped, the older you are the more your premiums will be, this is because the health risks we face as we age are greater. Using the same basic policy from above, the cost of the 43 year old, non-smoker goes from £49.06 a month to £69.77 a month for a 53 year old.
Smokers Can Pay More For Health Insurance
Some insurers will charge smokers more for Private Health Insurance while others don’t discriminate. The additional cost is due to the fact that there are a number of associated health risks that come with being a smoker.
If I Give Up Smoking Could I Get Reduced Premiums?
Absolutely. If you can prove you have given up and haven’t consumed nicotine in the last 12 months, most insurers will then class you as a ‘non-smoker’ therefore lowering your premiums.
Does Vaping Increase The Cost Of Private Health Insurance?
It is important to note that insurers don’t just class those using cigarettes as smokers. A ‘smoker’ refers to anyone using any nicotine based products including things such as vapes and patches. If you consume nicotine in any way your premiums will increase, even if it is through vaping.
Pre-Existing Medical Conditions Don’t Impact Your Premiums
If you have a pre-existing health condition, insurers choose to exclude the medical issue from the cover rather than look to increase the cost of your premiums.
Depending on the medical underwriting you opt for you may have the opportunity to cover your pre-existing condition if you’ve experienced no symptoms or had any treatment for a set amount of time e.g 5 years. Choosing a moratorium underwriting option where this maybe possible can cost more than full medical underwriting.
If you have a pre-existing condition it’s best to speak with an expert, such as one of the team here at Drewberry to ensure you’re getting the best policy for your circumstances.
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Your Postcode & Where You Live Could Increase The Cost
It’s true. Your postcode is one factor that will affect the cost of your Private Medical Insurance premiums. But why?
Well it is to do with the cost of treatment in certain areas, for example treatment in London is more expensive than other areas around the UK, which is why if you are based in the London area, the likelihood is you will pay more for cover than if you were in a more rural location.
This can seem unfair and make people feel that their health is based on a ‘Postcode lottery’ which is why some insurers don’t charge their customers differently based on where they live. So again its always good to do your homework or get advice from an expert adviser.
Factors That Reduce The Cost Of Health Insurance
Increasing Your Excess
The Excess is the amount you choose to pay should you need to make a claim. The higher amount of excess you opt for the lower your premiums will be.
It’s important to remember that if you do select a high excess, although your premiums might be cheaper, if you were to need treatment you would need to pay the excess upfront before being able to claim for the rest of the treatment cost. If your treatment costs less than the excess you selected, you will be responsible for paying the full cost.
Using the same details as we did above for our 43 year old, we’ve highlighted the difference in cost of a basic Health Insurance policy with varying excess amounts below.