Health Insurance- 5 Costly Mistakes You Could Make When Buying A Policy

Buying a health insurance policy can be a complicated process, and many people are unaware of the easy mistakes you can make when purchasing cover. Here are the top 5 ‘don'ts' when shopping for private medical insurance.

1. Choosing a budget policy

As with all insurance policies, your premiums will directly affect your level of cover. Although buying a budget PMI policy may seem like a bargain, you could actually lose money in the long-run. Cheap health insurance policies will have limits which it is important to be aware of.

2. Not checking the policy limits

On a basic policy, providers may put a limit on the maximum amount they will pay for a single medical condition, and on how long they will continue to cover it. For example, an outpatient limit of ??500 would mean that you could only claim up to ??500 a year for any outpatient treatment, and pay out of pocket for the rest.

Many customers are also unaware that budget health insurance policies will not include cancer cover. Even patients with basic cancer cover may only be able to claim up to a certain annual limit, such as ??30,000.

This does not mean you have to purchase an expensive comprehensive policy. It is essential to customise your policy to suit your needs and budget.

3. Not customising your policy

Many insurers are moving away from the traditional approach to health insurance, which grouped policies into ‘budget', ‘standard' and ‘comprehensive'. Now, customers can pick and choose what they would like covered, and what they don't mind receiving on the NHS.