Part 1

In the UK around £3 billion a year is spent on Health Insurance. Seven million people are insured with one in seven policies being purchased by individuals, the remainder being put in place by employers for the benefit of their employees.

Health Insurance is designed to provide protection for curable, short-term medical problems. It enables policyholders to jump the NHS queues to see consultants, be diagnosed, receive surgery or be treated.

But it’s not a replacement for the NHS. Private hospitals don’t have emergency and casualty departments and you don’t necessarily get better medical care – you simply get it quicker and at a hospital and at a time that suits you.

The fact is that Health Insurance is complex and few policyholders take the trouble to carefully read the details of their cover. As a result, many policyholders misinterpret what their policy will cover. If you are expecting Health Insurance to pay every medical claim, you’re mistaken.

Policies refuse to pay for dental treatment unless it is taken out as an optional extra to the main Health Insurance policy. Standalone dental insurance policies are also widely available and are becoming increasingly popular.

They also refuse to pay for treatment associated with straightforward pregnancies and childbirth. However if complications develop, then with most policies, the picture changes – the insurance will meet the costs of treating the complications.

How about cosmetic surgery? Again the answer’s no. Cosmetic surgery is clearly an elective procedure and does not constitute a valid medical problem.

When it comes to the issue of treating alcoholism and drug abuse, the insurers take the view that the problem is self-inflicted. Sorry sir, you’re certainly not insured.

Few prospective purchasers of Health Insurance will be too surprised or upset about these exclusions. But those are the tip of the iceberg!

Before you buy you need to appreciate the less obvious treatments and situations that fall outside the scope of the cover.

Part 2 of this article goes on to explain in detail …….. Click here for Part 2