Thursday, January 31, 2013

Private Health Insurance and Hospital Cash Plan

These days, some form of health insurance is really important for every individual. Health insurance plans protects against unexpected medical bills and losses that a person would have to pay out of pocket if he was struck with illnesses or an accident. Moreover, it gives the peace of mind that health care costs will be taken care of by the insurance company and not the individual in case of emergency. In this article, I will highlight two types of insurance that is increasingly popular today. These are private health insurance and hospital cash plan.

Private Health Insurance

Private health insurance offers coverage for short term illnesses and injuries that are curable. One of the major benefits of having a private medical insurance is that you receive treatment faster in the hospital of your choice. Moreover you also have a lot of choices when it comes to when, where and by whom you will be receiving treatment.

Another benefit is that you can get coverage for pre-existing conditions as well. But your coverage may only start after a specified waiting period. You may also be required to pay a higher premium if you wish to get covered for any pre-existing conditions. Private health care is expensive and so is private health insurance. Although you will be getting the privacy, comfort, convenience and speed in treatment, you will be paying a higher premium than those who are on standard insurance plans. Choosing private medical treatment is about how much you care about your privacy and convenience and whether or not you can afford this type of insurance. Private medical insurance is the best type of insurance you can get if you have found a suitable policy for yourself that is within your budget.

Hospital Cash Plan

Is an increasingly popular type of health insurance, but is less comprehensive than private health insurance. Although it is a relatively new form of health insurance, the market is already diverse. There are a large number of companies which provide hospital cash plans today. The limitations and benefits of the plan will in fact depend on the provider you choose and the cost you pay.

The purpose of hospital cash plans is to provider the holder of the policy a lump sum for each day that he has received treatment as an in-patient in a private hospital or an NHS. This sum is tax free and certain types of plans can also provide coverage for dental care.

Hospital cash plans do not cost a lot and are suitable for most families. However, the policy holder does have to know what the benefits of the policy and the exclusions are. The amount that a person has to pay depends on the level of cover he gets. If a person chooses a higher level, he must understand that in such a case, a private medical insurance policy will be much better as it offers a greater level of cover and fewer restrictions. If the person needs minimal cover, then hospital cash plans are one of the best choices.

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