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Insurers seek to cut cost of medical insurance
Sales of private medical insurance (PMI) have stalled in recent years as people have shunned expensive policies and been willing to rely more on the NHS.
Millions of workers benefit from group PMI plans which are paid for by employers, but for individuals wishing to buy this insurance privately, it can be prohibitively expensive, particularly for older people.
This may account for recent moves by insurers to provide cheaper policies by allowing policyholders to pick the benefits they require instead of having to buy comprehensive cover.
Other ways in which policyholders can reduce premiums is to opt for NHS treatments in return for cash payouts or to agree to larger excesses.
Last week Standard Life launched a personal healthcare plan allowing policyholders to mix and match their benefits to dovetail with their budget and health requirements.
The core plan provides inpatient and daypatient treatment, hospital charges, consultants' fees, diagnostics and monitoring tests, in and outpatient cover for cancer and major outpatient scans. Optional extras include dental, maternity or psychiatric cover. Policyholders can also reduce their premiums by opting for a longer claims free period.
For instance, a 40 year old opting for Standard Life's 'core' Healthcare policy, with Outpatient 1(the lowest level of cover) and a £250 excess would pay a premium of around £44 a month. The same policy with the highest level of cover and a £100 excess would cost the same male £75 a month.
Tesco Personal Finance has recently revamped its PMI medical insurance policy to provide three levels of cover, ranging from basic 'operation and procedures' cover to 'consultation and tests' and 'additional therapies,' with the latter paying out on treatments such as physiotherapy and acupuncture.
AIG's HealthChoice pays customers cash sums if they opt for NHS treatment and gives policyholders the flexibility to spend the money on operations and treatments as they see fit.
