As the cost-of-living crisis begins to bite for many Britons, we are all looking for ways to save money. Health insurance is a purchase that is well worth the expense – but it can be a costly addition to monthly expenses.
It is unsurprising that many will be looking at ways to reduce their outgoings, so ways to save money on your health insurance will come in handy.
It’s possible that not all the below options will be applicable to you (or that you’re already doing them!) but hopefully, you’ll be able to save a little!
Many of these options involve changing the level of cover in place, which reduces the comprehensiveness of the benefits you will receive.
Please discuss your options with a trusted intermediary or adviser before making major decisions to change your policy!
1. Reduce Your Outpatient Cover
One of the easiest ways to save some money on your private medical insurance premiums is to look at your outpatient cover.
Most insurers have several options when it comes to outpatient cover. This ranges from unlimited (the most expensive option), to £1000, £500 or even no outpatient cover at all. The more comprehensive your outpatient cover is, the more expensive your health insurance premium will be. The lower your outpatient cover is, the cheaper it will be.
Of course, it is important to consider how important outpatient cover is to you before you decide to remove it from your plan completely. On average, each person will only have one specialist outpatient appointment a year. If you know you have had more outpatient appointments than this historically, reducing your outpatient cover may not be the best option for you.
2. Increase Your Excess
An excess is the pre-agreed amount of money you have to pay towards a claim on your insurance. As with any insurance policy, increasing your excess can help reduce your premiums.
Finding the right balance between excess and premium can take a little adjustment. It is one of the areas where it’s a good idea to consult with a trusted adviser or your insurance company. Many insurers offer a wide variety of excesses. Across the whole market, excesses can range from £100 to over £3000 depending on the type of insurance, the insurer and the plan selected.
3. Reduced Your Hospital List
The hospital list is one of the most important aspects of any health insurance policy. After all, it is what you’ll be needing if you need to claim on your private medical insurance. It’s also one of the best places to save money on your health insurance.
Health insurance companies all have different tiers of hospital lists which range from full directory to local. It is worth considering a more local (or lower tier) hospital list if that is sufficient for your needs as it could save you a lot of money. If you don’t need them, opting out of the central London hospitals is also an efficient way of saving money.
4. Add a 6-Week Option
Depending on the insurer, a 6-week option might be available to you, and it can help you save money on your private medical insurance. It stipulates that if the treatment can be dealt with via the NHS within a 6-week period, you will receive the treatment on the NHS.
If it can’t be facilitated in this time frame, the insurer will take on the treatment as normal. Be aware that this will downgrade your plan when claiming for inpatient or day-patient treatment.
It reduces your premiums because it makes it less likely that you’ll have to make a claim. However, there are some downsides. Firstly, it can mean that you’re not seen by the consultant of your choice. Secondly, it is not an option offered by all insurance companies.
Thirdly, you can end up using NHS facilities when you might prefer private ones – after all, it’s what you’re paying for. For example, if you suffer from a heart attack or a stroke, you will likely be seen quickly on the NHS due to the severity of the condition. You might also require a long hospital stay which will be in an NHS ward rather than a private hospital room.
5. Remove Add-Ons e.g. Dental Or Travel
As health insurance policies are modular, there are options to add things like dental or travel at the conception. They are a good way of covering your health from multiple angles, but if money is tight, then it’s a place you could consider saving.
It is worth looking at your add-ons to see if you’re using them to their full potential. If you’re not using them, it can be a way to save money at your renewal. Some other popular add-ons include optical, protective no claims and cancer assist.
As an intermediary, we will always give you honest advice regarding the risk and reward of removing add-ons – especially ones like cancer care. Sometimes the monetary savings are not worth the risk of removing the cover.
6. Ask For Discount At Renewal
As with many insurance companies, sometimes a good way to get a discount is to simply ask for it. Whilst a broker might be able to negotiate a reduced price on your behalf, many insurance companies only deal with the client directly when it comes to discounts.
Please be aware that many brokers will not offer this service as standard, especially if your annual premium has increased a normal amount or there were lots of claims made.
Asking for discounts takes time and energy to negotiate and communicate between the client and the insurance company. Hence, it is not feasible to do it for each client, but is potentially a service offered at the broker’s discretion.
7. Work With A Broker
Working with a trusted advisor or intermediary can help you save money in several different ways.
Though brokers have access to the same deals and prices as clients. However, because they take lots of business to the insurance companies, they sometimes have more bargaining power which can work in your favour.
Brokers also provide you with more service for your money. As they should not charge their clients for their service, you are getting a completely free service as well as the health insurance you were planning to buy anyway. They help you yearly on your renewal and can help with claims and advice.
Another benefit of working with a broker is the saving of time. They collate and present the facts to you, so you don’t have to spend hours trawling price comparison sites or waiting on hold with insurance companies. They will help to process your renewal and keep you up to date with all you need to know. If time is money, then brokers will save you plenty!
8. Pay Annually
As with all insurance, paying annually can bring about small savings. If you pay monthly, you are essentially borrowing the money for the whole policy from the insurance company. When you pay monthly, you are paying off this debt – with interest. This is why twelve separate payments add up to more than the single payment option.
Of course, this is not always an option, depending on your personal financial circumstances.
Conclusion
There are lots of ways to save on your health insurance premiums.
If you want to know more about how an experienced insurance broker can help, get in touch now!
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