Private Health Insurance (UK)
Discussion
Looking for opinions here, appreciate they will all differ but would like to see the balance:
I never really had health insurance until around 18 months ago, where it came with part of a negotiation when my employer was acquired. Fortunately I never had to use it.
Fast forward to now and I've changed roles to a foreign employer with no UK presence. As a result, they couldn't offer me private health insurance, but did pay me the extra as to what it would cost as a net value, tax etc. on top. So the option I have is to take out a policy, or not, receiving the reimbursement value regardless.
Now, the benefit of the cover I have always seen, it the ability to almost "queue jump". Recently, with COVID19, everything has gone to pot and it pretty much has zero benefit at this stage. I'm not for one moment suggesting that anyone should have the ability to do so, regardless of policy/wealth etc. but it certainly makes you question the purpose.
Me/Mrs CT are both c.30 years old with our first child expected shortly - my only thought was to take it out in expectation of the birth and to allow coverage of the child in case worst case scenario, anything was required from the childs perspective.
For clarity - i'm on the fence.
Question is, has the current turn of events changed your opinion on its worth? Interested in any personal experience or rationale.
Thanks
I never really had health insurance until around 18 months ago, where it came with part of a negotiation when my employer was acquired. Fortunately I never had to use it.
Fast forward to now and I've changed roles to a foreign employer with no UK presence. As a result, they couldn't offer me private health insurance, but did pay me the extra as to what it would cost as a net value, tax etc. on top. So the option I have is to take out a policy, or not, receiving the reimbursement value regardless.
Now, the benefit of the cover I have always seen, it the ability to almost "queue jump". Recently, with COVID19, everything has gone to pot and it pretty much has zero benefit at this stage. I'm not for one moment suggesting that anyone should have the ability to do so, regardless of policy/wealth etc. but it certainly makes you question the purpose.
Me/Mrs CT are both c.30 years old with our first child expected shortly - my only thought was to take it out in expectation of the birth and to allow coverage of the child in case worst case scenario, anything was required from the childs perspective.
For clarity - i'm on the fence.
Question is, has the current turn of events changed your opinion on its worth? Interested in any personal experience or rationale.
Thanks
Back in 'normal times'...
My Father-in-Law had two knee replacements done privately, if he didn't have cover he would've had to wait until he was pretty much wheelchair bound until the NHS would look at replacing them.
My wife has used it a few times, once for a minor operation that is no longer offered on the NHS and once when she needed to see her consultant urgently but couldn't get past their secretary.
We wouldn't be without it now, but both get it via our employers.
My Father-in-Law had two knee replacements done privately, if he didn't have cover he would've had to wait until he was pretty much wheelchair bound until the NHS would look at replacing them.
My wife has used it a few times, once for a minor operation that is no longer offered on the NHS and once when she needed to see her consultant urgently but couldn't get past their secretary.
We wouldn't be without it now, but both get it via our employers.
Mr Pointy said:
OP: I don't know if you've ever had to use the NHS for chronic, non urgent health issues but my personal experience is that it can be a horredous process. I'd strongly recommend that anyone who can afford private health care should do so.
I’d agree with non urgent but private health insurance doesn’t generally cover chronic conditions, only acute phases of chronic conditions. As an example it wouldn’t cover routine checkups for arthritis but would cover a knee replacement required because of arthritis. May see nit picking but it’s important to read the small print. It also covers stuff that the NHS may not, such as certain cancer drugs for instance.
I’ve had PMI for 35 years through workplace and now paid for by myself and wouldn’t be without it. Aside from the current t situation you tend to get seen sooner, by a consultant in nice surroundings.
Edited by craig1912 on Thursday 23 April 11:31
Interesting points - seems like the coverage is similar to pet insurance in that case: i.e. good for a one off issue, should it occur and you feel the NHS wait is either detrimental or inconvenient, but something longstanding, chronic and ongoing is worthless to claim due to an increase in premiums offsetting it.
It really is a different proposition when you're paying for it with actual money as opposed to a company scheme whereby if you weren't in it, you wouldn't benefit either.
A top rated quote we had was ranging anywhere between £100-£150/mo. which, at £1800 a year post tax is making me question it.
It really is a different proposition when you're paying for it with actual money as opposed to a company scheme whereby if you weren't in it, you wouldn't benefit either.
A top rated quote we had was ranging anywhere between £100-£150/mo. which, at £1800 a year post tax is making me question it.
JackCT said:
A top rated quote we had was ranging anywhere between £100-£150/mo. which, at £1800 a year post tax is making me question it.
I'm with Vitality through work (ie. I don't have a choice) and with all their offers and bonuses for being active and healthy (you link activity watch for steps, etc.) you can take a chunk off that. Not masses, but it's things like walk 7000+ steps a day for 5 days a week for a month and you get free Amazon Prime the next month, do a crazy amount of exercise and get an extra 1% cashback with their Amex card, etc. It's still expensive, but if you take advantage of all their offers I reckon you could get £25-30 of stuff a month, but you need to be someone who goes to the cinema, drinks coffee out, etc.
JackCT said:
Interesting points - seems like the coverage is similar to pet insurance in that case: i.e. good for a one off issue, should it occur and you feel the NHS wait is either detrimental or inconvenient, but something longstanding, chronic and ongoing is worthless to claim due to an increase in premiums offsetting it.
It really is a different proposition when you're paying for it with actual money as opposed to a company scheme whereby if you weren't in it, you wouldn't benefit either.
A top rated quote we had was ranging anywhere between £100-£150/mo. which, at £1800 a year post tax is making me question it.
Well there is an alternative: self insure. Take £200 a month & put in a savings type account that you don't touch. If you're feeling a bit braver open an S&S ISA & pick a low risk fund which might help you to keep pace with inflation. Given that you are both still quite young then it's unlikley you'll suffer from wear & tear issues like worn out knees or cataracts & you are less likely to get cancer for a few years yet. Review the situation in ten years or so when you'll have £24k saved as long as you haven't made any claims. It really is a different proposition when you're paying for it with actual money as opposed to a company scheme whereby if you weren't in it, you wouldn't benefit either.
A top rated quote we had was ranging anywhere between £100-£150/mo. which, at £1800 a year post tax is making me question it.
Mr Pointy said:
Well there is an alternative: self insure. Take £200 a month & put in a savings type account that you don't touch. If you're feeling a bit braver open an S&S ISA & pick a low risk fund which might help you to keep pace with inflation. Given that you are both still quite young then it's unlikley you'll suffer from wear & tear issues like worn out knees or cataracts & you are less likely to get cancer for a few years yet. Review the situation in ten years or so when you'll have £24k saved as long as you haven't made any claims.
This is very good advice. Unless you have long-term chronic issues then private health insurance in the UK is unlikely to be a good investment.I get PHI as a 'benefit' with work, which means that I've shelled out well over £10k in benefit-in-kind payments in the last decade for something which, as we as a family are pretty heaIthy, I have got absolutely no 'benefit' from.
deckster said:
Mr Pointy said:
Well there is an alternative: self insure. Take £200 a month & put in a savings type account that you don't touch. If you're feeling a bit braver open an S&S ISA & pick a low risk fund which might help you to keep pace with inflation. Given that you are both still quite young then it's unlikley you'll suffer from wear & tear issues like worn out knees or cataracts & you are less likely to get cancer for a few years yet. Review the situation in ten years or so when you'll have £24k saved as long as you haven't made any claims.
This is very good advice. Unless you have long-term chronic issues then private health insurance in the UK is unlikely to be a good investment.I get PHI as a 'benefit' with work, which means that I've shelled out well over £10k in benefit-in-kind payments in the last decade for something which, as we as a family are pretty heaIthy, I have got absolutely no 'benefit' from.
TwigtheWonderkid said:
deckster said:
Mr Pointy said:
Well there is an alternative: self insure. Take £200 a month & put in a savings type account that you don't touch. If you're feeling a bit braver open an S&S ISA & pick a low risk fund which might help you to keep pace with inflation. Given that you are both still quite young then it's unlikley you'll suffer from wear & tear issues like worn out knees or cataracts & you are less likely to get cancer for a few years yet. Review the situation in ten years or so when you'll have £24k saved as long as you haven't made any claims.
This is very good advice. Unless you have long-term chronic issues then private health insurance in the UK is unlikely to be a good investment.I get PHI as a 'benefit' with work, which means that I've shelled out well over £10k in benefit-in-kind payments in the last decade for something which, as we as a family are pretty heaIthy, I have got absolutely no 'benefit' from.
If I get really ill, with the potential for truly massive bills, I will be treated by the NHS anyway. The outcomes that health insurance cover tend towards higher likelihood but lower cost (I want to skip the hip replacement queue, which will cost me a few grand).
As with any insurance, you are by definition likely to put in more than you get out, and so if you can cover the expected 'worst outcome' then you are on average going to be better off by investing the premiums against future events. Health insurance is pretty expensive (the premium to cover my family is significantly more than the annual insurance for my three cars) and so falls well into the discretionary spend part of my particular spectrum.
deckster said:
This is very good advice. Unless you have long-term chronic issues then private health insurance in the UK is unlikely to be a good investment.
I get PHI as a 'benefit' with work, which means that I've shelled out well over £10k in benefit-in-kind payments in the last decade for something which, as we as a family are pretty heaIthy, I have got absolutely no 'benefit' from.
Two things - Private Health Insurance doesn’t cover long term chronic issues, by definition it covers short term acute conditions.I get PHI as a 'benefit' with work, which means that I've shelled out well over £10k in benefit-in-kind payments in the last decade for something which, as we as a family are pretty heaIthy, I have got absolutely no 'benefit' from.
It’s normally abbreviated to PMI (Private Médical Insurance) as PHI is usually the abbreviation for Permanent Health Insurance which is something completely different.
You could have always opted out of the scheme and not paid any tax on the benefit.
PMI is a great product but too many people spend their budget on this before other more important financial products, such as mortgage protection, family income benefit, critical illness etc.
If you have all those other products in place then I think it’s money well spent. Most of our clients business goes to Vitality at the minute as they are reasonable on premiums with good customer service.
If you’d like any help then one of our advisers will be happy to help.
If you have all those other products in place then I think it’s money well spent. Most of our clients business goes to Vitality at the minute as they are reasonable on premiums with good customer service.
If you’d like any help then one of our advisers will be happy to help.
The risk of developing common cancers rises with age. PMI is relatively cheap until you get into your fifties when it becomes increasingly expensive because that’s when you start using it. My advice would be to take out a basic policy with a provider like WPA with an excess that wouldn’t be too onerous. Save a regular amount into an ISA as mentioned above and use this if you need it later. The cost of a knee replacement self pay is about 13k. Cancer treatment is expensive but by the time you need it the NHS will have been taken apart and turned into a German style hybrid model. Elective surgery will be done in the private sector funded by the state and compulsory insurance. It can’t come soon enough.
All good points above for me to consider.
The speed of treatment is the real benefit here by the looks of it.
To answer the above questions, Mortgage cover by one life policy, a separate life policy for the family and critical illness cover are all in place.
Income protection I do not have, but do have enough savings to see us by a rainy year.
Of course, the premium from hereon will likely on go one way, which is also off putting and i would guess, at the first use will increase exponentially too (just like my pet insurance...).
The speed of treatment is the real benefit here by the looks of it.
To answer the above questions, Mortgage cover by one life policy, a separate life policy for the family and critical illness cover are all in place.
Income protection I do not have, but do have enough savings to see us by a rainy year.
Of course, the premium from hereon will likely on go one way, which is also off putting and i would guess, at the first use will increase exponentially too (just like my pet insurance...).
JackCT said:
Of course, the premium from hereon will likely on go one way, which is also off putting and i would guess, at the first use will increase exponentially too (just like my pet insurance...).
Premiums increase with age and generally don’t increase with claims but, some insurers have no claims discount which probably works in your favour when younger. You can also protect the NCD.Generally premium increases are 5-10% per annum.
I’m with Aviva who are consistently rated very good for customer service (particularly when claiming).
They have a NCD which you can protect together with a discount of up to 15% at renewal if you use the online health checker a few times in the year.
I’ve probably used about £25k in claims over last 30 years. Nothing urgent or life threatening but for me having the choice of when I’m treated, the guarantee of seeing a Consultant, private room and generally being treated quicker is worth it.
Given a knee op or hip replacement can cost £5k-£10k and a wait of months on the NHS and cancer treatment up to hundreds of thousand £, as long as I can afford it I will pay for the cover.
I’ve got the full bupa package for myself and my wife. As I’ve never claimed or had any medical problems it’s actually gone down by £1 for the last couple of years.
I’ve never had to claim and hope I don’t have to. But for what’s a surprisingly cheap price I’m happy to have it as a fallback.
Although I’m under no false illusions, if something goes wrong they are not keen on paying out and the premiums ‘could’ go up to £ks a month. The trust pilot reviews for bupa are a mixed bag.
Still for the price of a meal out once a month it doesn’t seem too bad. Although I am aware I’m now mentally trapped into it as a product. If I cancel it and something goes wrong that it would have covered or saved your life, that must be a hell of a mental mind f
k. Especially as I cover my wife. If I decide to cancel and the next week she gets something terminal they could have saved her that’s a stinger.
I’ve never had to claim and hope I don’t have to. But for what’s a surprisingly cheap price I’m happy to have it as a fallback.
Although I’m under no false illusions, if something goes wrong they are not keen on paying out and the premiums ‘could’ go up to £ks a month. The trust pilot reviews for bupa are a mixed bag.
Still for the price of a meal out once a month it doesn’t seem too bad. Although I am aware I’m now mentally trapped into it as a product. If I cancel it and something goes wrong that it would have covered or saved your life, that must be a hell of a mental mind f
k. Especially as I cover my wife. If I decide to cancel and the next week she gets something terminal they could have saved her that’s a stinger. Gassing Station | Health Matters | Top of Page | What's New | My Stuff