Private medical insurance is something that older members of society cannot afford.
Recent surveys show that people in their 50s do not think of themselves as middle aged and are likely to be involved in activities such as yoga. However insurance companies may not take the same approach.
Insurance companies look at hard facts when calculating premiums. Statistically speaking people are more likely to make a claim as they get older. So when people reach the age of 50, premiums increase.
According to Insurancesupermarket.com, the cost of medical insurance will be prohibitive when people get to retirement age while cheaper policies have too many exclusion clauses.
The company estimate that people in their 60s pay approximately 60 per cent more than those in their 20s.
Richard Mason of Insurancesupermarket.com says premiums can differ by up to £200 a month, but savings can be found on the internet.
During a person’s working life, they are likely to receive medical benefits, but after retirement or redundancy people have to arrange for their own cover.
David Thomas IFA of Chadney Bulgin says people normally have a medical history when they reach their 50s or 60s, this can increase premiums.
“If you’ve got, or had, a problem it can be quite difficult to get affordable cover as prices rocket,” he says. “Most policies have exclusions such as back trouble or depression. A lot of older people who come to us want private medical insurance after leaving work, and want the same level of cover they had before. But they when they learn how much it will cost they soon back-pedal. It comes as quite a shock to the system.”
The Association of British Insurers (ABI) show private medical insurance is mostly a company perk and levels are increasing.
As a result of a decline in private individuals taking out medical cover, policies are now available to suit most circumstances, at lower costs.
Top of the range comprehensive policies will include in patient and day patient care, dental cover, complimentary therapies. Whereas basic policies cover limited common conditions that requires a one night stay in hospital but no tests or appointments for a private consultant.
Companies such as Axa PPP Healthcare, PruHealth and Bupa have all launched policies aimed at helping older being able to afford medical insurance.
Axa PPP Healthcare launched the Retirement Essentials plan covering four common ailments: heart conditions, arthritic joint replacement, inguinal hernias and cataracts. Other conditions such as cancer or treatments related to diabetes or high blood pressure will be excluded.
PruHealth has changed its pricing policy. People are rewarded for improving their health so lowering the chance of making a claim. Policyholders earn “vitality” points that translate into cost savings on premiums, depending on the level of claims.
Bupa has launched its Health care select Heart &Cancer policy which covers heart related conditions and cancer. Patients receive comprehensive cover from the initial consultation and diagnostic tests to treatment in a private hospital with any necessary