Choosing health insurance: questions to ask

What type of health insurance plan do I need?

Think about what type of policy you need. Many health insurance policies come in different classes; the most expensive ones obviously cover you for more.

You also need to consider whether you need a family policy if you want your whole family covered, an individual health insurance policy or what is termed a budget health insurance plan. Budget policies generally only cover treatment you need which is not available on the NHS within a set period. As their name suggests, they are more affordable.

What won't be covered?

Double-check with the insurer about what won't be covered. Health insurance generally won't cover long-term illnesses that cannot be cured like diabetes or multiple sclerosis. Nor will they cover any pre-existing medical conditions you suffer from. In addition, health insurance policies generally exclude things like cosmetic surgery and treating conditions like pregnancy and infertility.

What will be covered?

Private health insurance will normally cover the cost of specialists, surgery, accommodation and nursing bills in a private hospital, but make sure you double-check what is covered with the insurer or insurance broker. Some insurers will exclude cover for a medical condition that existed in the last five years but may offer cover for the condition if you remain free of symptoms for a certain period of time, for instance.

Are there any restrictions on the hospitals I can use?

Some private health insurance policies specify which hospitals you can use and will restrict you from using very expensive hospitals like the big London ones where costs are high.

How are claims met?

Some health insurance policies will settle bills direct with the hospital, others require you to pay the bill and claim the money back. Check with your insurer.

What is the cost?

The big question, of course, is: how much are you likely to have to pay each month for your health insurance policy? Ask too if there are any ways to reduce the cost (such as by agreeing to accept a restricted choice of hospitals, or through a no-claims bonus system available with some health insurance policies).

Will charges increase with age?

Ask potential health insurance providers whether premiums rise with your age and how likely it is for your health insurance premiums to increase on an annual basis.