Health insurance can seem like a huge commitment if you have never had it before. But, most people say that they never regret getting a policy. It gives them peace of mind if they get sick. But, you should have your finances in order before you start looking for a policy. After all, you want to ensure you are able to afford the cost.
So, what exactly are health insurance premiums, and what can you expect when you look for a policy? Here is a guide on everything you need to know.
What are Health Insurance Premiums?
Let’s start from the very beginning. What are health insurance premiums? Simply, your health insurance premium is what you are paying for your policy. Thus, you can have a high premium you pay every month, or you can have an affordable premium. It is just another word for the amount you pay.
You always want to make sure that you pay the premium of your policy. This is going to ensure that you can make a claim if you use private healthcare. Most policies will have an excess you also have to pay. Then, the provider will cover the rest of the medical bill.
How Much are Health Insurance Payments?
The premiums for your health insurance are going to be unique for every person. So, you will not necessarily pay the same as a friend that has a policy. Every provider will set their own prices, and there are a variety of factors that will dictate how much you will pay. It is best to get a quote to find out what your premium will be.
Note that the average monthly premium is around £125 for adults in the UK. This is £1,500 per year. Again, everyone is going to be different. If you want to enjoy private medical care, you can get a quote for insurance and see how much it would cost you as an individual. You might be quoted more or less than these average amounts, depending on your health, location, age and claims history.
How Do You Pay Health Insurance Premiums?
Most people choose to pay for health insurance each month. This can be an easy and affordable way to handle the premiums, making it a manageable payment. Indeed, it can be a lower amount you pay and you can filter it into your monthly salary.
But, there are other ways you can pay for health insurance. For example, some people choose to pay for it once a year. This can be a large payment, but it can also mean that all of the expenses are paid. So, you can relax and know you have paid all of your health insurance for the year.
You should decide what is going to be the best for your situation. There are benefits to both ways of paying, and it will be up to you what you think is best.
Can You Reduce the Premiums You Pay?
The answer is yes. It is possible to reduce the premium you currently pay or have been quoted for. Let’s take a look at a few easy ways you can do this.
Do Not Accept Extras
Before you agree to a health insurance policy, make sure that it does not have additional extras. This is something that can cost you more money. Of course, evaluate whether you want this extra first. But, if you do not feel like you will use it, remove it from the policy. This can bring down the price.
Avoid Claiming for Everything
Something to note is that every time you make a claim, your premiums are going to increase. This is something that you do not have to happen if you are budgeting and trying to save money. A sudden jump in your insurance price can throw you off track. So, you want to avoid claiming everything under the sun and evaluate whether you can pay the cost yourself. This way, you can keep your premiums to a minimum. What’s more, if you make no claims at all, this means that you can get a bonus. This will create a discount on your premium.
Choose a Higher Excess
You might be interested in simply lowering how much you are paying each month for your health insurance policy. In other words, you will deal with bigger payments later on. Well, if this is the case and you need a short-term solution, know that you can choose a higher excess when it comes to a policy. This means that you pay a higher amount when you are making a claim. But, it can keep the price of your policy down on a monthly basis.