As an entrepreneur, you’ll know how important it is to be in good shape for work, which is why private health insurance could be a great choice, offering you much-needed protection. This guide explains how contractor health insurance works before showcasing the UK’s best providers.
How health insurance works for contractors
Health insurance is designed to get you the quick treatment you need. As a self-employed entrepreneur, you probably don’t get sick pay. While you’re waiting for NHS treatment, long absences from work are the last thing you need. Health insurance pays for private treatment and expedites your access to high-quality medical care. There is a wide range of options in the market, so you can choose the right policy for you in terms of coverage and affordability. When you get sick or injured, you simply contact your health insurance provider to file a claim and arrange the treatment you need.
Why is health insurance important to entrepreneurs?
The main benefit of health insurance for entrepreneurs working in the UK is that it helps you get back to work faster, giving you much-needed protection should the worst happen and you suffer a serious illness or require hospital treatment. Musculoskeletal disease can affect your ability to sit at a desk, so you need to reduce your working hours until you recover. Other conditions may affect your ability to concentrate and complete complex tasks that carry a higher daily cost or project fee. We’d all like to think we’re irreplaceable, but would your customers wait for you to recover or should they find a replacement?
It’s worth thinking about how much time you can afford to leave work before your income suffers. NHS England says the waiting time from referral to treatment should be no longer than 18 weeks for 92% of patients. This figure has not been achieved since 2016.
Of course, there’s no way to predict how any medical condition will affect your business in the long term, so it’s also worth considering taking out income protection insurance to provide you with financial support should you need it.
Price of private treatment
You might think health insurance sounds like a good idea, but you’re still hesitant about the cost of the monthly premium. It’s worth remembering that you don’t need insurance to access private treatment in the UK. You can still see your GP for primary care, see an NHS consultant for a diagnosis and then opt for private treatment as a next step. The question is, what can you expect to pay?
The cost of your treatment depends on several different variables. Unsurprisingly, the price is likely to be higher if you are treated in London. The nature and complexity of the procedure will also have an impact. A consultant with many years of experience will be more expensive than someone younger. Treatment costs can vary between hospitals and treatment centers depending on their level of investment in the latest equipment, drugs and staff costs.
Generally speaking, the average cost of private surgery ranges from around £1,500 to £2,500 for simple procedures such as carpal tunnel release, wisdom tooth removal or cataract surgery. The most complex operations are inevitably the most expensive, with a shoulder, hip or knee replacement costing between £11,000 and £13,200 on average.
Basic benefits of health insurance
Avoiding loss of income isn’t the only benefit of health insurance if you’re a contractor. You have a busy life, and private healthcare allows you to choose when and where you receive treatment to fit around your other commitments. Ill health and stress can take a toll on your overall well-being, and your health insurance can provide helpful sources of help. These additional services may include access to a virtual GP, mental health support or resources, discounts and rewards to help you improve your overall health and prevent illness.
Most of the UK’s best health insurance providers offer cover for musculoskeletal conditions, cancer care and mental health support and a range of other conditions and treatments – including access to medicines not routinely available on the NHS. You’ll also find a range of add-ons so you can tailor your health insurance to suit you. A family member’s illness or injury can affect you as much as your own. Some insurers allow you to include your family on the policy for free or at a reduced cost so you can offer them the same benefits and reduce everyone’s stress levels.
Benefits of health insurance for contractors:
- Get treatment at a time that suits you
- Choose where you will be treated
- Choose who will provide your treatment
- Avoid NHS waiting lists and get back to work as soon as possible
- Get mental health support when you need it
- Access to private GP services (many of which are available 24/7)
- Access to medicines is not routinely available on the NHS
- Discounts and rewards
- Protection for your family
What does health insurance cover?
The exact health insurance you get will depend on the insurance provider and the policy you choose. You’ll usually be offered cover for hospital and day treatment and surgery, and things like outpatient diagnosis and physiotherapy are often extras. Most health insurers will also pay for cancer treatment, although this is sometimes only offered as an extra. Leading health insurance providers will also include mental health treatment and additional mental health support that you can access when you need it, without a GP referral.
It is important to remember that health insurance only covers acute conditions that can be cured with treatment. On the positive side, it allows you to quickly recover and return to work.
What is not covered?
We have already mentioned that most private health services only cover acute conditions. It probably won’t come as a surprise to learn that most chronic diseases are ruled out. If you have a long-term medical condition such as diabetes, asthma or angina that cannot be cured but requires ongoing treatment, your health insurance will not cover it.
Pre-existing conditions are also excluded, with most policies excluding anything for which you have sought medical advice or treatment in the past five years. However, they cannot be turned off permanently. There is often a two-year moratorium on most policies, meaning that if you have not received treatment for a condition within that time, your insurer may offer cover in the future.
Some insurers have a long list of exclusions, so it’s always worth checking the details, especially if you have any health problems or risks. In addition to chronic diseases and pre-existing conditions, health insurance usually excludes the following:
- Addiction treatment
- Aesthetic surgery or other purely cosmetic procedures
- Pregnancy and maternity leave cover (although some will offer cover for pregnancy-related complications, which helps if you can’t return to work or need to take maternity leave earlier than planned)
The best health insurance for entrepreneurs in the UK
In this section, we highlight eight of the best health insurance providers in the UK, each offering excellent cover depending on your individual needs and budget.
1. WPA
WPA offers, in our opinion, the best contract health insurance because it gives a 20% discount to self-employed people and professionals. They offer excellent customer service with easy requests through their app. Their two flexible policies offer superior cancer treatment coverage and an extensive list of hospitals and treatment providers. The only downside is that you can’t get cover if you’re over 65.
2. Exeter
Exeter is a friendly society and offers a community rated scheme which extends to policyholders between the ages of 70 and 80. Their basic policy includes outpatient surgery, cancer and mental health care and can be customized with a range of extras. They are among the top rated insurers for customer satisfaction and claims payment, which could be important when you want to get treatment and get back to work. This may not matter to you now, but it’s worth keeping in mind if you want a long-life policy.
3. Axa Health
AXA Health health insurance gives you access to inpatient and day care as standard, with a choice of over 250 private hospitals. Outpatient coverage is available as an option. This gives you the flexibility to customize your policy, and the coverage itself is generous. There is also no limit to the number of physiotherapy or chiropractic sessions, which could be attractive if you work in a physically demanding job.
4. Freedom of health insurance
Freedom Health Insurance provides you with comprehensive basic coverage with no restrictions on the choice of consultant. Your premium isn’t based on your zip code, and they guarantee that your premium won’t increase for the first two years, which should help you budget. There are also many additional options, including outpatient care. They also provide cover for pregnancy complications, which can potentially significantly affect your working life.
5. Bupa
Bupa is one of the best known health insurance providers in the UK. Their comprehensive policy includes everything you would expect as standard, including cover for mental health care. When you take out a policy with them, you also have access to a wide network of private hospitals and clinics. There are no age restrictions, and they offer their members an impressive range of rewards and discounts.
6. National friendly
National Friendly isn’t a name you might recognize, but they have a simple and friendly approach to health insurance. They offer flexible policies with comprehensive coverage and an excellent selection of hospitals. They guarantee that your premium will not increase during the first five years of your policy, which could be attractive if budget is a key factor for you. There are some restrictions on diagnostic tests and some cancer treatments, but they generally know how to take care of their policyholders.
7. Vitality
Vitality is known for its innovation and commitment to promoting a healthy lifestyle among its members. Join Vitality with no pre-conditions in the previous three years and you’ll get 10% off your premium, with ongoing discounts if you stay healthy (and can prove it). They also offer comprehensive coverage, including a promise to pay all your hospital bills.
8. Aviva
Aviva‘with The Healthier Solutions policy is comprehensive and includes both inpatient and outpatient care at hospitals and clinics across the UK, although you are limited to the specialists Aviva chooses for you. You’ll benefit from comprehensive cover including cancer care, access to a digital GP and a 24-hour stress helpline. It’s great for the budget conscious as they offer many ways to lower your premium.
As a contractor, do you need health insurance?
Here’s why health insurance could benefit you as a contractor.
- You can bypass NHS waiting lists and get treatment quickly.
- You’ll return to work sooner and potentially avoid a significant loss of income.
- You can access the treatment at a time that suits you and your busy schedule.
- Health insurance can provide resources to help you take care of your health and well-being.
- Some providers allow you to add family members to your policy.
Waiver: This information is general and what is best for you will depend on your personal circumstances. Talk to a financial advisor or do your own research before making a decision.
