How Much Does Retiree Health Insurance Cost?
The price of your Health Insurance policy will be based on a range of factors:
- Level of outpatient cover
You can opt for full outpatient cover, where everything is paid in full; limited outpatient cover, where there’s a limit on outpatient care; or no outpatient cover, where you only have cover if you need inpatient treatment.
- Optional add-ons
Optional add-ons such as routine dental and optical cover or mental health cover will increase the price of your premiums. For cheaper cover, consider whether you really need such added extras.
- Your postcode
This determines the local private facilities you’re eligible for treatment in, so if you live in an area with more expensive hospitals then your cover will reflect this.
- Your age
The older we are, the more likely we become to make a claim on Health Insurance and therefore the higher the premium.
- Smoker status
Smokers are much more susceptible to illnesses such as cancer and cardiac problems than non-smokers and thus smokers pay higher premiums.
- Your medical history and current state of health
If you have a serious medical condition or a history of one, then you may pay more for cover.
Some factors that influence the cost of your policy are things that you are unable to control, like your age or your medical history.
Cutting the Cost of Senior Medical Insurance
There are a few ways in which you can adjust the cost of your policy to keep it affordable even as you get older.
One of the best options to reduce the cost of cover when you apply for your policy is the excess.
An excess is an amount that you agree to contribute per year or per claim. Just like with car insurance, the more you agree to pay upfront, the lower your premiums will be.
6 week NHS wait
Another option to make a policy more cost effective is to add a 6 Week NHS wait.
With this option, you would only be able to make a claim if the wait time for your treatment on the NHS is longer than 6 weeks.
When you add this option, the cost of your policy can be brought down considerably and you stand a better chance of protecting your no-claims bonus if your policy has one.
Keeping your no-claims discount intact could mean a far gentler increase in your premiums the following year.
Some insurers give you a range of options to choose from in terms of the facilities and hospitals where you can receive your treatments.
To lower the cost of your policy you can choose a reduced hospital list.
A reduced hospital list limits the facilities you can visit to a certain area or means that you receive your treatment in a private ward in an NHS hospital rather than visiting an entirely private facility.
Example Costs of Senior Health Insurance
To calculate the monthly cost of Health Insurance for a person aged 55, 60 and 65, we’ve assumed:
- All the individuals are in good health
- They’re non-smokers
- They’re looking for a mid-range policy with a mid-range hospital list
- They’re willing to pay a £250 excess
- They don’t want any additional extras on their policy
- They’re based in the same postcode as our Brighton office.