I am looking into a Private Health Insurance plan and am unsure of whether or not I should include an excess.
- Tom Conner
- Director
What is Health Insurance Excess?
An excess is a common option to consider when looking into private medical insurance. To save money on your Private Health Insurance policy, you can volunteer to pay a certain amount towards your medical bills – this amount is called the ‘excess’.
Some insurers require the excess to be paid per claim while others simply require the excess to be paid on the first claim in any policy year, regardless of the number of claims made. To find out which is required of you when you purchase your policy, it is important that you read the terms and conditions carefully.
How Does Health Insurance Excess Work?
When you apply for your policy, you will be free to decide on an amount for your policy’s excess, which will typically range from £0 to £5,000. Some insurers will allow you to set your excess even higher while others may have a compulsory excess.
If you don’t set an excess when you first take out your policy, most providers will allow you to set one later on, so it’s alright if you change your mind after your Private Medical Insurance policy has already started.
When do I pay an excess?
After your excess has been arranged, you will be required to pay the amount that you set either per claim or for one claim per year.
If you decide to claim on your policy and seek treatment privately, then to make a claim your insurer will give you an authorisation number . You will need to take this number with you when you go for your private consultation.
After you have undergone your private treatment, your medical bill will be split into what is and what is not covered by your Private Health Insurance policy.
The amount that is covered by your policy will be sent to your insurer and they will pay it. After their part has been paid, your insurer will then notify you that you need to get in contact with the private clinic or specialist in order to pay your portion of the bill.
The portion of the bill that you will need to pay will include your excess and any amount that exceeds the cover limit of your policy.
Should I Add an Excess to my Private Medical Insurance?
One of the biggest benefits of setting a Private Health Insurance excess is that it has the potential to reduce the cost of your policy quite considerably.
Adding an excess of as little as £200 can reduce the cost of your policy by as much as 10%. You can see for yourself how much of a difference an excess can make on the cost of your policy by comparing Private Medical Insurance quotes online.
However, when setting your Private Health Insurance excess, it is vital that you are able to afford it.
The key to setting an excess is to find a good balance between affordability and comprehensive cover.
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