What You Need to Know About Excess and Health Insurance

Being new to health insurance means learning all the lingo and jargon that comes with it. Indeed, there are many terms and phrases that providers will use in order to enlighten you on the policy. So, you want to learn what they are so you can fully understand what coverage you have and what is involved with the health insurance policy you are choosing.

In particular, one term you are going to come across is ‘excess.’ Namely, you will have to choose your excess amount when you are getting health insurance. Here is a guide on what you need to know.

What is an Excess?

First, can you really explain what ‘excess’ means when it comes to health insurance? This is the amount of money you have to pay when you make a health insurance claim. So, if you have an excess of £500, you have to pay this amount towards the treatment. Then, the insurance provider will pay the rest.

Every health insurance policy is different. Some providers might want you to pay a certain amount of excess, while others can leave this decision to you. It is best to get a quote in order to see your options. You can get a quote at https://www.usaycompare.co.uk/health-insurance and see what providers will give you in terms of a policy. Then, you can find out what the excess will be.

How Much of an Excess Should You Have on Your Policy?

Note that the excess you have on your insurance policy is often going to be your decision. In other words, you can decide how high or low you want it to be. In addition, providers can suggest different amounts too, whether this is £100 or as much as £5,000. Here are some things you need to know.

The Higher the Excess, the Lower the Cost

The excess you have is going to affect the monthly premium you have to pay. Namely, if you have a higher excess, this is going to lower the cost you are paying every month. The idea is that you pay more if you need treatment. Many people choose to do this so that they can enjoy a cheap policy. They deal with the payment later if they need medical attention.

If you choose to go down this route, you need to make sure that you have the money to pay the excess. For example, if you choose to have a £3,000 excess, you need to ensure you can handle this payment. If you would rather have a cheaper bill to pay with treatment, you want to choose a lower excess amount. This will mean paying more each month for health insurance.

You Pay If You Make a Claim

Remember that you only have to pay the excess if you are going to make a claim for the private healthcare you have received. There are going to be some policies that require you to pay this once in a policy year. Others might state that you have to pay the excess amount for each new claim you make. 

The important point here is always to read the policy terms and conditions. Then, you are going to know when you are paying the excess in relation to claims, and you can figure out what is going to work out best for your finances.

How Do I Decide on a Policy Excess?

You might be unsure about what policy excess amount you should get for your health insurance. Indeed, this is not always an easy decision, and you have to think about your financial situation and the likelihood of making a claim. 

If you are someone that likes to pay the lowest amount of money in the short term for your policy, then you want to have a high excess. This means that you can have a cheap premium each month, and you will deal with the excess if you have to make a claim. Alternatively, if you are someone that worries you could have a huge bill in the future, you can choose to have a low excess. While this means paying more each month for your policy, it also means your excess will be a lot lower when claiming.

Think about whether you can afford to pay more each month. You can also think about whether you have savings to deal with a high excess. Indeed, consider your own health and if it could be likely that you will seek treatment in the near future.