What are the benefits of health insurance in the UK? (Guide for 2024)

How does private health insurance work?

Health insurance, sometimes called private medical insurance, gives you access to private hospitals and health services in the UK if you need them. You pay a monthly premium, and if you get injured or unwell, you can make a claim and be privately examined. As with all types of insurance, what you are covered for will depend on the options you choose when you take out the policy. For example, there are basic policies that will only cover expenses treatments where an overnight stay in hospital (inpatient) is required and more extensive policies, covering things like diagnostic tests and consultations, along with outpatient treatment and mental health support. As you might expect, basic policies tend to be relatively inexpensive, with more comprehensive coverage costing more.

Most importantly, health insurance always covers only acute medical conditions, meaning those that can be cured relatively quickly. Chronic conditions that may require permanent treatment rather than immediate treatment will not be covered.

Top 10 benefits of health insurance in the UK

These are the most significant benefits you can expect when you take out a health insurance policy in the UK:

1. Treat yourself sooner

Probably the most significant benefit of having health insurance in the UK is that you will usually be treated much more quickly than you would have been if you had gone through the NHS. Of course, there are occasional exceptions to this, but in general, going into private accommodation means you’ll get the treatment you need sooner. As this British Medical Association article points out, there are currently more patients than ever waiting for NHS treatment, which is one of the main reasons why we’ve seen a rise in the number of people who have never had private health insurance taking out policies.

2. Get diagnosed sooner

If you opt for a comprehensive policy, then you will benefit from private diagnosis as well as treatment. You would always start with a GP appointment, but instead of being referred to the NHS for tests, scans and consultations, everything would be done privately. This is perhaps the biggest benefit of comprehensive policies as you effectively reduce your reliance on the NHS and reduce the chance of being on a waiting list. Ultimately, faster diagnosis means faster treatment, which is why many opt for a comprehensive policy instead of a basic one.

3. Excellent cancer coverage

According to Cancer Research in 2015, 1 in 2 people in the UK will develop cancer at some point in their lives. Since recovery and survival rates are closely related to the speed of diagnosis and treatment, this is one of the most important reasons to take out a private health insurance policy. All the best private health insurance providers in the UK provide excellent cancer cover and you can usually expect to be diagnosed and treated much quicker than if you didn’t have a policy. Not only will you be treated sooner, but you will also receive additional support along the way. This could be access to qualified counsellors, the ability to receive chemotherapy at home and even money towards the cost of dentures and wigs if necessary. Cancer insurance is a key part of the policies of all leading providers; they know how important it is to people, with the fact that the level of protection and care in most cases is extremely high.

4. A private room while you are in the hospital

Depending on the condition you are diagnosed with, you could be in the hospital for anywhere from a few days to a few months. Either way, going private will give you a private room while you’re in the hospital. While this may seem like a relatively minor benefit at first glance, for many, privacy during a hospital stay can make a big difference in their overall experience. Not only will you get a private room, but most private hospitals are much more relaxed when it comes to visiting hours. So your family can visit more often, at a time that suits them, rather than being restricted by stricter rules in an NHS hospital. Many of the top insurers will also include money in accommodation costs for parents if their children need to stay in hospital, meaning parents can spend more time there, rather than driving to and from home.

5. Access medicines and treatments not routinely available on the NHS

Although many treatments are available on the NHS, some are excluded or not approved due to their cost or experimental nature. With private health insurance, many of these restrictions will be removed, giving you the ability to receive the latest medicines and treatments, regardless of their cost. Again, there will be exceptions, and all drugs and treatments must be approved by NICE for their use to be considered, but your options are much wider when you have a private appointment.

6. Virtual services of general practitioners

Most leading providers and policies will allow you to access the services of a virtual GP, sometimes referred to as a digital GP. Although service provision will vary from insurer to insurer, most will allow you to book a GP appointment via phone or video consultation via an app or online. This means you can usually get the medical advice, prescriptions and even the referral you need much quicker than trying to get an appointment with your local NHS GP. Some health insurance providers even allow you to book an appointment with a GP 24/7 so you can fit it around your schedule. As NHS GPs have restricted physical examinations in their surgeries over the past few years, these virtual GP services have become increasingly popular.

We should emphasize that you do not need to have private health insurance to get a virtual GP appointment as there are many services, such as Livi and Simplyhealth, that allow you to pay for a private GP appointment.

7. Mental health support

Private health insurance often comes with mental health support, where you can speak to a trained mental health nurse 24 hours a day. Many providers now include access to talk therapies with their core products. If you want more comprehensive cover, you can choose to take out Mental Health Cover with your policy which will remove many of the restrictions and give you outpatient access to psychiatrists and other mental health professionals.

8. Choice of where, when and who treats you

Most of the time you don’t get to decide where, when and who treats you on the NHS, it’s a postcode lottery and you’re usually limited to available hospitals, consultants and appointments. With private health insurance, you get a lot more choice when it comes to your treatment. First of all, we should emphasize that the choice of your adviser and even the hospital will depend on what options you choose when setting up your health insurance policy. By default, insurers will give you a national list of hospitals to choose from, and they’ll probably also recommend your consultant. However, you can choose to include other hospitals on your list and have the option to choose your own consultant. Both usually come at a price, but if access to the best of the best is key to you, then it may be a cost worth paying. In any case, with all health insurance policies, you will have much more flexibility when it comes to the timing of your treatment. In general, most of them are in the private sector, so you can book a treatment at a time that suits you and your other commitments.

9. Annual health checks

Many of the UK’s leading health insurers include an annual health check with their policies. It is an opportunity for you to thoroughly examine your current physical health, and for experts to spot anything wrong ahead of time. During your annual health check you can expect to be checked for all of the following; your cholesterol profile, your mobility and flexibility, your body fat percentage, your BMI, your blood pressure and more.

10. Discounted gym membership and other exclusive offers

Finally, all UK health insurance providers will give you discounts on various things, which can offset the cost of your policy to some extent. The biggest and most popular is the discounted gym membership, but there are various other offers like discounted coffee, clothing, travel and more. If price is important to you, checking which providers give the most valuable discounts is a useful exercise in determining the effective cost of health insurance.

Disadvantages of health insurance

Health insurance has its drawbacks and we think it’s crucial to have a balanced view of the service and give you all the facts. Here are what we consider the main disadvantages:

• Health insurance can be expensive and is not strictly speaking necessary as the NHS can provide you with health care for free.
• The cost will usually increase each year as you age, which can make it unaffordable in later life.
• Not all conditions and treatments will be covered.
• Emergency services are not included.
• You may get better care than the NHS. Just because it’s free doesn’t mean the care is of a lower standard.

Private health insurance and the NHS

The private healthcare system is not a complete replacement for the NHS; it is a free service that you should use in addition to the public health system. There are several reasons why this is the case, but the most important is that private health insurance will not cover you for chronic conditions, meaning those that cannot be cured. Although you may have been diagnosed privately, you will need to seek NHS treatment and care for these conditions. Private hospitals also don’t provide accident and emergency services, so if you suddenly feel unwell, you should still visit your local emergency room. Finally, while most health insurance providers give you the option of including children on your policy, the NHS prioritizes young people, so the benefits of private insurance are often not as pronounced.