With the recent economic downturn, Lots of families have felt pressure on their family finances and as such health cash plans have become more popular to ease the pressure.
The health cash plan contributes towards routine healthcare costs by paying a cash sum whenever the insured individual/family requires services from medical practitioners such as dentists, chiropodists, opticians etc.
The money received from the plan can be spent however you want.
Much like all other insurance policies, it is of paramount importance that you read the fine print on the policy. You will note that most plans cover dental and optical costs but other will also include treatments such as podiatry, chiropody, physiotherapy, acupuncture, homeopathy, and specialist examination and treatment.
Please note, that the amount which can be claimed will be capped so you should know the limit. If you want a cap that is for a higher amount, you may be able to opt for it by paying a higher premium.
Things you should know
Where one of more parents is covered by the healthcare cash plan, child cover is often provided for free. Also, you wouldn’t usually be required to go through a medical check up if you wish to join the health cash plan.
Also unlike Private Medical Insurance, health cash plans don’t increase with age, however some insurer do have age limits if you are signing up to the health cash plan for the first time.
Features of Health Cash Plans
No medical Report required:
Health cash plans do not require a medical and so are apt for people who are not at the peak of their health. Also, they are valid for any age group of people. You have to pay a flat-rate until you reach the age of 65 so, your current age does not matter.
Separate plans for different health conditions:
There are different plans and you must choose the one that suits you. Suppose you have weak vision but excellent hearing ability then there is no point choosing a plan for ear check-ups. Better invest in an optical cover that guarantees pay-out for vision related treatments.
Employer support for plans:
Some of the employers offer health cash plans as a perk. If you are covered under this then no need to buy another plan. Although, you do not need to pay for these plans, it certainly needs payment of taxes incurred. So, be ready for it. However, it is a cheaper option then paying for the entire plan.
Claim and get a pay-out:
Most of us would agree that these plans are highly beneficial but as these are little investments, we often forget about them. In order to receive a pay-out, you must claim it first. If you forget to make a claim by the end of the year then you lose out on the pay-out money. So, make sure you claim and leverage the max benefit of these policies.
Covers kids and partner:
Another fantastic thing about healthcare cash plans is that all of these policies can cover one or two adults, which could be you and your partner and allow an addition of a child with no extra cost. With the addition of children, it becomes a family plan. The children are given separate allowances or may share their parent’s allowances. So, you don’t need to pay the cost of enrolling the child or partner for the policy.
Covers massages and alternative therapies:
Apart from optical, dental and physio plans, your health cash plan also covers alternative therapies like aromatherapy, cosmetic treatments like tooth whitening, medical pedicure and other alternative treatments. All you have to do is choose the right plan at the first place. So, you be rest assured.
Self-insuring – the best alternative:
If you have a healthy body and mind there are reduced chances of minor ailments or routine check-ups then instead of health cash plans, you should go for self-insuring. In this case, you don’t need to pay say £300 a year for a cash plan but can pay a much lesser amount like £25 into a high interest saving account. Whenever you want to pay for healthcare, you can get it from your insurance fund.
With all these benefits on one side, one thing that you need to be careful about is the policy end date. If you forget the end date then you lose the allowance of money given for routine healthcare. So, make a note of the end date of making a claim. With this in mind, you will enjoy small treatments without any hassles.