Insurance Section

How To Get Cheaper Medical Insurance

July 2005

Medical Insurance seems to have an inflation rate all of its own, and that rate is at least double the national average. But for most people this type of insurance is critical and they need to purchase it. But if costs increase so much each year is it possible to get better deals?

The Price Mechanisms of Medical Insurance

The price of Medical insurance is based on three main reasons;

1. The claims factor, ie how much are they paying out combined with the frequency of claims
2. What are the prices for the operations and new drugs and are they rising
3. Age is taken into account, obviously the older one is the more chance of medical assistance

How To Get Better Value Medical Insurance

• As ever the more research and understanding you do into this topic the chances of you getting a better deal go up considerably
• The worst thing you can therefore do is buy the first or second quote for medical insurance, SHOPPING AROUND is often the key with the author being able to reduce his BUPA bill from £54 a month to £28 by going with Preferred Medical
• Ask for 'budget cover' which is a slimmed down version of medical insurance and compare this against full cover
• Most policies these days also give a National Health Service option within a certain time period (usually 6 weeks), for example if the operation you need can be done on the NHS within 6 weeks your insurance cover is not needed (this can often reduce the policy by around 10%-20%)
• Many Insurers are now providing 'modular cover' which is where the client chooses what he/she needs on the policy. A core protection is offered and then you can add such things as physiotherapy or private nursing etc, cutting back on the modules can save a lot

Look At The Age Factor

Another important point to take into consideration is the age factor. Perhaps it's not so important what you pay today as to what your premium's going to be in 5-10 years times, especially if you're over 50 at present. One company to therefore look at is the Exeter Friendly Society which doesn't increase its prices as you get older, although the policy will take into account rising operation and drug prices etc.

The Exeter claims that younger people may well find their policies more expensive than competitors but over the long run because age is not taken into account the policy should work out very good value. It's certainly something to consider and the Exeter have a free guide available on Medical Insurance and how to compare different policies etc - Call 0845 450 9190.

See Also

• Find's list of Health Insurance providers
• Critical Illness Cover - Problems With 'Unexpected' Price Reviews