Types of Health Insurance and how to choose between them

Cost of Health Insurance

Health insurance costs depend on your age and the type of coverage you want. Here are key points to consider:

• Comparing Prices: Look at both the cost and what each policy covers. Comparing similar policies from different insurers can help you find the best deal.

• Payment Options: You can pay monthly via direct debit or annually in one lump sum. Be aware that monthly payments may incur additional charges.

• Discounts: Some insurers offer Young Adult rates for those aged 18-25. Check for available discounts.

Lifetime Community Rating (LCR)

The LCR affects how much you pay for health insurance based on your age when you first take out a policy:

• Age 35 and Under: Lower premiums if you start before turning 35.

• Age Over 34: A 2% loading applies for each year over 34, up to 10 years.

Avoiding Breaks in Cover

Avoid breaks in coverage of more than 13 weeks to prevent reapplying waiting periods and additional costs, especially if you’re over 35.

Types of Health Insurance Cover

• Inpatient Hospital Cover: Covers costs when you’re admitted to the hospital, including room charges, tests, and procedures.

• Outpatient Hospital Cover: Covers costs for treatments that don’t require hospital admission, like consultant appointments.

• Cash Plans: These cover day-to-day medical care costs like GP visits, dental treatments, and physiotherapy but generally do not cover inpatient costs.

• Public vs. Private Hospitals: Some policies cover private patient care in public hospitals, while others include private hospitals. Ensure your preferred hospitals are covered.

Understanding Costs and Coverage

• Waiting Periods: Typically, you must wait six months before you can claim. Pre-existing conditions may have longer waiting periods, up to five years.

• Excess: The amount you pay before the insurer covers the rest. Higher excesses can lower your premium.

• Upper Limits: Check annual limits for specific services to understand the maximum coverage available.

• Upfront Costs: Some treatments require upfront payment that you can claim back later. Verify if your insurer allows direct billing for more expensive treatments.

Key Questions to Ask

• What coverage do I need?

• Which treatments are important to me?

• Which hospitals can I access?

• What are the waiting periods, especially for pre-existing conditions?

• How much can I afford to pay, and what coverage do I get for that price?

By considering these factors, you can choose a health insurance plan that best meets your needs and budget.