For the older generation there are two obvious facts when buying medical insurance. Firstly, if you're over 50 your premiums will start to soar in cost. Secondly, insurance companies view this age group as expensive to cover even if you’re in the best of health and are a regular visitor to a Gym.
There are however ways to lessen your health insurance premiums with companies now starting to properly focus on the over 50s by offering different insurance plans. Read on.
Exclusions Are The Key To Getting Good Value Health Premiums
A 30 year old with no history of medical problems can normally get cheap insurance which pretty much covers them for everything. But it's the 'everything' the over 50s should focus on.
Start removing cover for such areas as back trouble, depression, physio, dental cover and operations that only require a short stay in Hospital (less than 2 nights). Do this and the premiums can start to plummet to more reasonable levels.
However, make sure you do your research into exactly what is covered and what isn't. It’s a good idea therefore to talk things through with your Doctor and a financial adviser who fully understands the ins and outs of medical insurance.
Some Examples Of Insurance Companies Offering 'Exclusion' Policies
Axa PP Healthcare
- Has launched a policy aimed specifically at the over 55s called the Retirement Essentials Plan
- It covers the 4 main ailments that affect people as they age: Heart, arthritic joint replacement, inguinal hernias and cataracts
- But other serious conditions such as cancer or problems due to high blood pressure are NOT included. This is a good example of why it’s important to fully research what you’re buying. It’s as important to see what’s covered as well as what isn’t
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Pru Health
- The Pru takes a slightly different approach and tries to reward people who look after their bodies and lifestyle
- The more effort people make the more 'vitality' points they get, and what do points mean? Prizes, in the form of reduced premiums in the following years
- For example, if you make a good lifestyle effort (such as going to the gym) policy holders can get up to 100% of the previous year's premium off the cost of cover in the following year
- We were going to suggest that these 'vitality' points look a bit gimmicky but then we checked things out on the Pru's website and are encouraged at how they approach the matter
Exeter Friendly
- This one is interesting, the selling point is that your premiums will always be calculated with reference to the age at which you first signed up
- The younger you take out a policy the better off you'll be in older age by means of cheaper yearly premiums
- If you're currently aged say 50 this Exeter policy might be the one to own when you reach 80+
BUPA
- Bupa has recently introduced the Health Care Heart & Cancer policy
- It as you'd expect only covers heart and cancer problems
- Policy holders will receive comprehensive cover for these conditions from start to finish, ie early consultations, treatments in private hospitals plus aftercare if needed
- BUPA makes a good argument for the older generation not needing expensive multi-ailment cover. It suggests that many over 55s have enough savings to pay for one-off operations such as a knee replacement, cataracts or varicose veins but paying for £50k-£100k in cancer treatment is different financial matter
Summary
Shopping around is the key for the over 50s when they want proper medical insurance at the right price.
Also, as we suggested some compromises must be taken via reduced or non-existent cover for ailments that you perhaps won’t need such as mental health cover. Another key to getting cheaper deals is to pay a higher excess, perhaps the first £1,000 instead of £500.
Whatever the case medical insurance is not an area where people should buy the first policy offered without doing some proper research especially into exactly what is covered and what isn't. When in doubt it is strongly advised that alongside your research you seek some advice from a professional.
Good luck in slashing those health insurance premiums!
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