What Are the Product Options Available in Private Insurance?

Insurance is based on the concept of €Risk Sharing', which prevents the insured individuals from any major financial catastrophes. Private Medical Insurances protects a person from the financial losses that may occur due to expenses pertaining to their health care. Private Insurance can be purchased by an individual or by their employers. The products offered by Private Medical Insurance are divided into three categories based on their scope of coverage apart from the general acute care benefits which is offered to all Private Medical Insurance products. The product categories are Comprehensive policies, Standard policies and Budget Policies.

Product Options

The individuals can select their product options taking into consideration the pricing factors after choosing the type of coverage which is suitable for their needs. The product options include:
€ The Permissible Level of Hospital Accommodation
€ Choosing their Hospital within the restrictions
€ The Depth of Coverage
€ Applying for No-Claims Discount

Choosing their Hospitals

Under this product option, the subscribers will have a restriction when it comes to their hospital selection; but in exchange these subscribers will be having a reduced premium amount for their policies when compared to the normal rate. The Insurance companies are able to offer reduced premiums to their subscribers because the company signs up with the hospitals which offer them discount on their services; thereby the hospital will have an increased amount of patient turnout. This method is beneficial for the insurance companies, subscribers as well as the hospitals.

Hospital Accommodation

All the major Insurance companies in the market will provide the subscribers with some option on the level of accommodation which the subscriber may encounter at the hospital. The hospitals will be divided into different bands and the services and the amenities that are available in the hospital will vary from one another based on their prices. For example, if an individual chooses a Band 3 hospital they may provide a private room with a bathroom in it, but on the other hand, if it is an expensive hospital it may provide you with the similar type of room but without a bathroom in it. So, it basically depends on the Band level and the hospital charges.

Depth of Coverage (Cost Sharing)

The Cost Sharing product option is mostly common in the Corporate Market when compared to the individual market. This is a Co-insurance model in which a portion any claim will be paid by the subscriber and the rest of the claim amount will be paid by your employer. Under this method, there will be a limit set to the contribution made by the subscribers - for example, the subscriber has to pay 10% of all their costs up to an annual limit of 2000 Pounds for each person covered by the policy.

No-Claims Discount

Under this option the policy holders are offered with discounts for the policy holders who didn't file a claim from the Insurance Company. The subscribers will be able to enjoy significant amounts due to the cost savings over a period of time.