Health Insurance: How It Works

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Health insurance is a simple way of taking care of your medical bills or protecting yourself against unforeseen circumstances.

In this article, you are going to learn how health insurance works and of course, you will also know what insurance is.

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Health insurance, also known as private medical insurance (PMI), is a type of insurance that protects you from paying high medical bills when you use private healthcare services. It’s not mandatory in the UK because residents can access free healthcare through the National Health Service (NHS).

However, many people opt for private health insurance to avoid long waiting times in the NHS and receive faster treatment, more options, and greater comfort.

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Health insurance works like other types of insurance. You pay a monthly or yearly fee called a premium, and in return, the insurance company agrees to cover your private medical expenses according to the benefits, terms, and conditions outlined in your policy.

Before you apply for health insurance, you’ll typically want to get a quote to see how much it will cost. You can do this by getting quotes from different insurance companies to compare plans, or you can ask a health insurance broker to help you.

Some insurance companies allow you to get a quote online by filling out a form with basic personal information like your age, contact details, and address.

With Freedom Health Insurance, you can quickly get an online quote without any obligation. You can customize your quote by adding extra health benefits, choosing your coverage level, and selecting your excess amount.

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What Does Health Insurance Cover?

Getting to know what health insurance covers is very important and that is what we are going to talk about in his content.

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A health insurance plan is meant to help pay for the treatment of sudden medical issues that arise after you’ve started the policy. Typically, each health insurance plan has a basic level of coverage called the core plan. You can then add extra benefits or adjust your coverage limits to better suit your needs.

The core plan usually covers treatments where you need to stay in the hospital or have day surgery. It may also include coverage for cancer treatment. Depending on your plan, you can choose to add other benefits such as:

  • Coverage for doctor visits outside the hospital (outpatient cover)
  • Treatment like physiotherapy or alternative therapies (like chiropractic or acupuncture)
  • Dental and vision care
  • Mental health support
  • Access to a private doctor

For example, Freedom Elite’s core plan covers hospital stays, cancer treatment, and diagnostic tests like MRIs and CT scans. It also provides cash benefits if you use the NHS and offers access to a virtual doctor around the clock.

There are usually limits on how much your insurance will pay for certain treatments. You can often adjust these limits when you buy your health plan to fit your needs better.

What Does Health Insurance Not Cover

Now that you have known all the things that health insurance covers, let’s give you the things that this health insurance doesn’t cover

While every health insurance policy and provider has its specific list of what they won’t cover, there are some common exclusions to be aware of:

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1. Pre-existing conditions: These are health issues or symptoms that you had before starting the policy.
2. Chronic illnesses: Conditions that need ongoing treatment and have no known cure.
3. Cosmetic surgery: Procedures done to change appearance rather than for medical reasons.
4. Fertility treatment: Procedures to help with conception or pregnancy.
5. Pregnancy and childbirth: Many plans don’t cover expenses related to pregnancy or giving birth.
6. Accident and emergency: Some policies may not cover costs related to accidents or emergency room visits.

It’s essential to review your policy carefully to understand what’s covered and what’s not, as exclusions can vary between plans and providers.

How much Does Health Insurance Cost?

Your health insurance premium depends mainly on your age. As you get older, your premium is likely to increase because you’re more likely to need medical care. Also, each time you renew your policy, the premium may go up because you’re older.

The type of coverage you choose also affects your premium. Adding more benefits to your policy will increase your premium. Some companies let you limit certain benefits to reduce your premium, but if your medical costs exceed the limit, you’ll have to pay the extra amount.

Using hospitals in central London may cost more, so some insurers charge an additional premium for that.

You might lower your premium by choosing a voluntary excess, which means you pay a bit more out of pocket if you make a claim.

If you’re unsure which benefits to choose for the right coverage at the best price, you can talk to an independent broker who specializes in health insurance. They can help you understand your options better.

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How To Do Health Insurance Claim

Here’s how the health insurance claims process typically works:

Step 1: If you’re feeling unwell, visit your GP. If necessary, they’ll give you a referral letter to see a specialist.
Step 2: Contact your insurance company to start your claim and get approval for your treatment.
Step 3: Once your claim is approved, go ahead and get the treatment you need.
Step 4: After your treatment, the insurance company will settle the bills. They might pay the hospital directly or reimburse you later, depending on your plan and the type of claim. If you have to pay an excess, the insurance company will deduct that amount from what they pay.

For some benefits, like dental cover, you can pay out of pocket and then get reimbursed by the insurance company, if it’s covered by your plan. You usually don’t need a referral letter for these types of benefits.

Conclusion

Here you have it and if you have any questions about this content you can kindly reach out to us here and we would be glad to help you in the best way we can.

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