Health Insurance Guide

Last Updated on Wednesday, 10 March 2010 16:57

Will my premiums increase over time?

Even with the wide range of PMI policies available, it is likely that whatever policy you choose your premiums will rise above the rate
of general inflation.

Advances in modern medicine mean that doctors are able to identify some conditions earlier than ever before. For example, a patient who had a heart attack 20 years ago might have been treated with a heart bypass operation. Today they might be offered a pacemaker before a bypass is considered. The cost of healthcare will increase when:

• new drugs, such as Herceptin and Avastin for the treatment of cancer, become available;
• the methods used to diagnose conditions become more advanced, which means patients can be treated more quickly, and are used more; and the technology used in surgery becomes more advanced.

PMI tries to keep up with new medical developments, as they become established medical practice. As you get older you are more likely to need treatment.

Premiums usually increase with your age to reflect this. You can always ask your insurer to give you advice about their current rates at different ages.

Can I reduce my premiums?

You may be able to reduce your premiums by choosing from:

• a reduced level of benefits, such as limited outpatient cover; a specific range of hospitals;
• an excess on your policy, where you pay the first part, say £100, £200 or £500 of any treatment, either each policy year or each claim;
• a policy with ‘co-insurance’ where you agree to pay a set percentage of any claim and the insurer pays the balance until you have paid an agreed yearly amount (after this the insurer pays 100%);
• a policy that offers a no-claims discount or a discount that depends on your commitment to health, including exercising regularly and
  not smoking;
• having treatment on the NHS, if this is available within 6 to 12 weeks of being diagnosed, rather than in a private hospital; and
• receiving a discount by changing how you pay.

___________________________________________________________________

Health Insurance Guide Index

• How do I buy private medical insurance?
• Will I need to give details about my health?
• How do I choose the right cover?
• What is and is not covered?
• Will my premiums increase over time?
• What if I want to change to a new insurer?
• Points to remember

Leave Comments