Healthy Lifestyle Equals Cheaper Premium

According to recent research conducted by Laing & Buisson, the number of people who are opting to take out private medical insurance has started to rise again, following a decline in recent years as a result of costly health insurance premiums.

The reason for this sudden change comes as insurance companies, in an attempt to maintain their customer base, are looking for ways to keep the costs of premiums down. An incentive that has been thought up is to link private medical insurance premiums to the fitness of a policyholder. Essentially, the more healthy ones’ lifestyle the more likely it is that you will incur less claims in the long term.

Insurance providers such as PruHealth, reward their policyholders for staying fit with their Vitality Plan, which is available at highstreet chemist Boots. If they attend the gym on a regular basis, do not smoke and undergo frequent medical check-ups with their local GP, they can be entitled to discounts of around 75% on their premiums, as well as guaranteed no-claims bonuses of at least 25%. A host of insurers, including Standard Life Healthcare, offer no-claims discounts, which can also be transferred from an insurer should the customer require it. For instance, if the customer makes no claims throughout a period of two years with one insurer and then decides to change to another insurer, the discount can, in some cases, be immediately effected with the new insurance policy.

Typically, insurance providers will apply an excess on most PMI policies so as to reduce the premiums, which will cover the policyholder for the first part of their treatment after which they will be responsible for paying the rest. However, some insurers are introducing the option of taking out a considerably larger excess, which will be at a substantially discounted rate. The insurer, Permanent Health, for example, offers policyholders an excess of up to £2,500 in return for a 50% discount on premiums, meaning that while the policyholder may not be covered for the treatment of minor conditions, they will be able to obtain private healthcare when undergoing more extensive and costly procedures. According to a spokeswoman for Permanent Health, many people, particularly the elderly who typically have more cash saved than younger policyholders, were prepared to spend money on a higher excess, in return for lower monthly premiums.

There are ways for people to generally cut back on their premiums, sometimes by switching to a smaller insurance company whose rates will not undergo the same fluctuations as larger insurers due to the simple fact that they have to deal with far less claims. Furthermore, if you purchase cover via a specialist broker, you are more likely to be privy to exclusive deals in addition to being represented by an insurer who is an expert in his field and therefore if you have a claim that is being contested, the specialist broker will help you to fight it. Be wary of budget policies unless you are informed of every detail in the small print, for example exclusions to policy and always remember to shop around when looking for a new insurance provider.