Are you totally new to health insurance and are trying to figure out what everything means? There is a lot of insurance jargon you will have to get to know to understand what your policy is all about. But, the problem is, it can be hard to find out what words and phrases mean since everyone makes it complicated.
Well, we are going to break things down for you. In particular, many people get confused about what an excess is on a health insurance policy. So, let’s keep things simple and take a look.
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What is an Excess on Health Insurance?
First of all, it is essential that you understand what is meant by an excess when it comes to a health insurance policy. This is a term that is used in the insurance industry and you are going to see a lot about it when you are looking at policies.
This is the amount of money you will have to pay when you make a claim. You will pay the excess and then the health insurance provider will pay the rest. As an example, imagine that you are getting treatment that is going to cost £5,000 and you have an excess, which is stated on your policy as £350. You will have to pay £350 towards this treatment and then the remaining £4,650 will be paid by the health insurance providers.
Every health insurance policy is going to state the excess in advance. Indeed, it is something you want to look at carefully when you are choosing a policy. It is best to get a quote and compare health insurance coverage to ensure you make the right decision for you. Learn more about getting a quote at Usay Compare. This is a comparison service you can use to find a policy that suits your finances and has an excess you are happy to pay if you need treatment in the future.
Why Would You Want a High Excess?
You will notice that the amount of excess you have to pay can vary considerably. Some amounts are high while others are low. You are probably thinking, who would want to have a high excess on their policy? Well, there can be good reasons for this. Let’s take a look.
Lowers Monthly Premiums
One of the main reasons why you may want to have an excess on your health insurance policy is so that you can decide how much you are going to be paying each month. You might be on a budget and want to ensure that you are paying the lowest premium you can. So, the idea is that you will have an excess to pay if you make a claim. But, in the meantime, you will pay a lower amount for your policy each month. This can work out more affordable for you and your family.
Therefore, having an excess can make things more affordable and comfortable for you. You will have many options and be able to choose how much excess you have. Of course, the higher the amount, the lower you will pay per month. In the long term, this might suit you best.
There are some people that prefer to have a really low excess on their health insurance policy. This is for peace of mind and so they know that if they need treatment, they are not going to have a lot to pay. The insurer is going to pick up most of the bill and you do not have to worry about dipping into your savings or having such a huge and unexpected bill to pay. So, it is important to think about paying more on a monthly basis if you want a lower excess. It can make things more manageable if something happens suddenly and you do not have a lot of savings to rely on.
What Type of Excess Should I Get?
Ultimately, it is going to be up to you how much of an excess you have on your health insurance. In order to decide what the best amount is going to be for you, you will need to think about how much you can afford to pay each month. You want to be able to afford health insurance without being too stretched. So, you need to sit down and look at your finances. See what the maximum amount you can pay is each month without feeling like you are struggling.
