It is true there is a fast growing market for those who choose to pay for private healthcare from th...
It is true there is a fast growing market for those who choose to pay for private healthcare from their own pockets. Nevertheless, there is a continued role for the traditional private medical insurance (PMI) product alongside the growing number of products to complement the growth of self-pay.
As planning for the provision of private healthcare is increasingly a fundamental part of the financial advice provided by IFAs, it is important to recognise the best route for the individual consumer. There are many that continue to want the reassurance of a PMI policy providing cover for both minor and major treatment. But there is an emerging breed of consumer that wants the flexibility of using savings (or even lending-power) to pay for treatment as and when required.
Despite the increased interest in self-pay, research has shown that few are aware of the cost of private medical treatment. Almost six out of 10 people under- estimated the cost of a heart operation and only three in 10 were able to give the cost of a MRI scan.
The option for IFAs' clients considering self-pay is one of the products designed to combine the benefits of self-pay and traditional PMI, making access to private treatment more affordable. These products provide a range of excess options costing significantly less than a traditional PMI plan and, in some cases, provide support for self-pay treatment.
To help customers pay for private healthcare up to the excess level, IFAs may decide to advise them to divert the money saved on premiums into a separate savings or investment plan to build up a 'health fund.' This could be used to cover their initial excess should they need to make a claim or to pay for minor treatment costs that fall below their chosen excess level.
