why take out health insurance
If you are unable to work due to illness, accident or disability, you may be able to get state benefits or sick pay from your employer if you are unable to work. however, these may not meet all your needs.
It’s worth checking to see if you could get by if you had to rely solely on state benefits. Compare this amount to the amount you think you would need to live on. it might be worth considering taking out health insurance to increase your income.
employer sick pay or pension
Your employer may pay you contractual sick pay. this means that you receive all or part of your regular salary for a set period of time if you are unable to work.
Some companies will also pay your pension early if you have to retire early due to health problems, although the amount you receive may be less than if you had worked until retirement.
If you’re not sure what benefits you’re entitled to from your employer if you can’t work because of health problems, ask them for details.
if you are self-employed
It is worth considering health insurance if you are self-employed and cannot receive payment from an employer or claim statutory sick pay. however, there are some types of health insurance that will not cover you if you are self-employed, so check the policies carefully before purchasing one.
types of health insurance
insurance critical illness
pays a lump sum if you are diagnosed with a specific disease, such as cancer or heart attack. If you have a mortgage, you may have been sold critical illness coverage when you got your loan. this is not the same as mortgage payment protection insurance.
income protection insurance
This is also called permanent health insurance. It pays you an income for the rest of your life or until you retire if you can’t work because of health problems or disability. you usually have to wait a few weeks or months before payments start.
payment protection insurance (ppi)
covers mortgage payments, credit card, store card or personal loans if you are unable to work due to health problems or become unemployed. you may have to wait a few months before payments start, and they usually stop after a certain amount of time.
A provider should never sell you ppi without making sure the policy is right for your needs. If you believe you have been improperly sold ppi, you can make a claim for compensation.
mortgage payment protection insurance
It only covers your mortgage payments. You may also have to wait a few months before payments start, and they usually stop after a certain amount of time.
what to think about before taking out health insurance
Before taking out health insurance, check if you have health insurance combined with other insurance or with your mortgage.
Also check what benefits your employer pays if you are unable to work due to health or disability.
You may have savings you can use instead of insurance. however, find out if your savings will cover a long period of ill health.
what illness does the insurance not cover
Illness insurance policies don’t always cover all illnesses. some policies say you must be extremely ill or totally disabled before you can claim.
You may not be covered for illnesses you’ve had before, so check your insurance policy to see how much it will pay if you get sick.
Some health insurance policies won’t cover conditions you already have. if you have health problems, you may not be able to get health insurance.
You should provide your insurer with as much information as possible about any medical conditions you have or have had in the past. if you don’t, you may not be able to file a claim.
how much does health insurance cost
Health insurance can be expensive and you won’t get reimbursed if you never file a claim. As you get older, it costs more because you are more likely to file a claim.
If you do dangerous or very physical work, you may find it difficult to get health insurance or may have to pay higher costs to get coverage.
If you have dangerous hobbies or a lifestyle that may include smoking, heavy drinking, or drug use, you may not be able to get health insurance.
Insurers may not pay if you don’t tell them ahead of time about things that may affect your claim.
when can you file a claim
Generally, you must wait at least a month before you can file a claim. check how long the waiting period is and think about how you will hold out during that time.
It may cost less for health insurance if your employer pays you sick or if you have savings you can use for the first few months. you can take out health insurance to start paying when your other income runs out.