If you’ve decided to buy health insurance, you might think that working with an insurance broker will make your policy more expensive because you’re adding a broker. However, a good broker could save you money. Here’s how brokers can lower your health insurance costs.
How do health insurance brokers work?
A health insurance broker is an intermediary between you and the health insurance company. There are many health insurance companies in the UK market and health insurance brokers help you choose the right one for your needs. Your insurance broker will also help you choose the best health insurance policy and customize it for you.
When you choose a health insurance broker, they will start by talking to you to understand your requirements. They will then get quotes from health insurance companies and discuss them with you to help you understand the pros and cons of each offer so you can choose the right policy.
Advantages of buying health insurance through an intermediary
Health insurance brokers can help you lower your health insurance premiums, but there are other benefits as well. Specialist health insurance brokers have detailed knowledge of the UK insurance market and can offer expert advice on the best insurance company and policy for your needs.
You might think that the easiest way to get quotes is to contact each health insurance company directly. However, this approach can be time-consuming, especially if you have to search for quotes from insurers. Health insurance brokers provide a time-saving service, as they will get quotes and do all the work for you.
How a health insurance broker can help you save money
Health insurance brokers can help you lower your health insurance premium in a variety of ways. When you first talk to a health insurance broker, they will try to understand your life and circumstances. Your lifestyle can affect the health insurance coverage you need and how much your premium will cost.
Advice from your health insurance broker can also help you spend less elsewhere. Here are some ways a health insurance broker can save you money on your health insurance.
1. A broker can introduce you to new health insurance providers
When shopping for insurance, you might be tempted to stick with the top providers you’ve seen advertised on TV or in print. However, many smaller insurance companies provide excellent coverage but have a lower profile than the major insurers.
Health insurance brokers have detailed knowledge of each provider and can recommend the ones that fit your needs. For example, some insurers have family-friendly policies, while others focus on health and wellness. An insurance broker can refer you to providers whose policies best suit your needs that you may not have contacted yourself.
2. You won’t waste money paying for coverage you don’t need
Health insurance usually starts with basic coverage that the insurance provider includes in every policy. This usually includes inpatient treatment, cancer care, certain limited mental health support, and outpatient coverage for diagnostic tests or procedures.
Then, you can customize your coverage by adding additional extras at extra cost, such as full outpatient coverage and therapies such as physiotherapy or acupuncture. Your broker can give you personalized advice on which extras are worth having so you don’t waste money buying cover you’re unlikely to use and only adding extras that will benefit you.
3. It will let you know where you can spend more
It might seem counterintuitive to discuss spending more when talking about the ways an insurance broker can help you cut costs. However, if you want cost-effective coverage, it’s wise to spend your money where it will benefit you the most.
Your health insurance broker can provide you with expert advice on the policy coverage that meets your specific requirements. For example, you may have a family history of cancer and want the most comprehensive coverage, or you may need a lot of physical therapy coverage because you’re at risk for musculoskeletal problems.
By helping you lower your premiums elsewhere, an insurance broker can free up your remaining budget to spend on the things that matter most to you.
4. They can advise you on the best ways to reduce your premium
There are several ways to lower your health insurance premiums. Reducing the amount of coverage your policy provides is one way, but there are others. Your health insurance premiums will depend on some personal factors beyond your control, such as your age or medical history.
However, some policy terms also help you reduce the premium. An excess policy means that you pay part of the treatment costs yourself when you make a claim. Some are per treatment and others are annual and increasing your excess will reduce your premium. Your health insurance broker will talk to you about your options and help you decide what’s affordable so you don’t avoid using health insurance because the excess is too high.
They can also explain other options. Guided consultant selection reduces the number of consultants your policy covers. The six-week waiting option means you can only make a claim on your policy if you will be waiting more than six weeks for NHS treatment.
5. A broker can help you cut your costs elsewhere
A health insurance broker can assess your living expenses and advise you on ways your health insurance can help you reduce them. Your total monthly or annual costs will likely continue to increase when you start paying your health insurance premium, but your policy can help offset that increase if you choose wisely.
Here are two main ways health insurance can help keep your costs down.
Regular medical expenses
If you already pay for routine health care such as eye tests or dental exams, your health insurance may provide the same coverage for less. In most private health insurances, you can include optical and dental coverage as an extra. Your health insurance broker can advise you if the increased premium is lower than your current price.
Alternatively, many policies allow you to add a health cash plan that provides cash back on routine health costs. You can request a refund of all or part of the fees for vision examinations, glasses, dental examinations and treatment. Most plans also cover treatments such as private physiotherapy and pay a fixed amount if you receive NHS treatment.
Reward schemes
Every insurance company has a member rewards program that offers rewards and discounts on various products and services. Some programs give the same rewards to every member, while others allow you to earn more by increasing your activity level and reaching health goals. Rewards typically include everything from discounted movie tickets and free coffee to discounts on gym memberships and fitness tracking technology.
A health insurance broker can help you decide which insurance company offers the right scheme for your needs. For example, if you’re fit and active (and can prove it), Vitality’s rewards system allows you to earn more rewards. However, if you’d rather not follow every step, your health insurance broker can offer advice on a suitable alternative.
6. Who do you want to include in your policy?
When you first speak to a health insurance broker, they will ask you about your family circumstances in order to guide you to the right private health insurance policy. If you and your partner want health insurance, a couples policy can reduce the price per person.
Your broker can also suggest cost-effective ways to add your children to your health insurance plan. Some insurance companies allow you to add all your children while paying for just the first, or include grown children who have left home, which could be ideal if you have a teenager about to start college.
7. Brokers provide free and unbiased advice
Insurance brokers do not charge for their services, which means you get free advice when you use an insurance broker. Instead, insurance brokers work on a commission basis, which means they receive payments from insurance companies when you buy a policy.
You may suspect that brokers will encourage you to choose the insurance company that pays the best commission. However, their professional rules prevent this. The Financial Conduct Authority regulates every health insurance broker, which means brokers must act in your best interests.
A regulated broker differs from a health insurance agent or comparison website in that it provides tailored advice from across the health insurance market. Agents can only recommend products of the company they represent. Comparison websites can show you various options, but they don’t help you compare policy coverage, terms and conditions to help you understand the pros and cons of each policy.
8. Your broker has access to exclusive deals
While brokers must provide advice based on your best interests without favoring a particular insurance company, an experienced health insurance broker naturally builds relationships with different companies over time. This can give them access to the best deals and incentives not available to the general public.
Using a broker allows you to take advantage of lower rates or benefits, such as free monthly cover when you first buy a policy. However, brokers still need to ensure that the policy is the right choice for you regardless of any discounts.
9. Professional advice whenever you renew your policy
When you work with a broker, they are there for as long as you need them. Most brokers will answer questions about your coverage, and some also provide claims assistance, especially for complex claims.
When your policy is due for renewal, they will contact you to check if your existing policy still meets your needs or if you need to make changes. Switching to a new provider can be complex, but a broker can explain your options and guide you through the process.
