Private medical insurance when you retire – do you need it?
Do you know what your options for private medical insurance will be at retirement? You should do.
Private medical insurance (PMI) is a crucial part of a long term retirement strategy that requires careful consideration because your health is equally as vital as your finances, if not more so.
Who are IHCS?
Here at Thornton Chartered Financial Planners, we are working closely with Independent Health Care Solutions (IHCS) in our joint aim to support clients like you and to help you to make an informed decision about your retirement planning.
We have chosen IHCS as they are a specialist medical insurance broker aiming to give clients like you unbiased advice, jargon-free guidance and ongoing support throughout the policy year.
The NHS is under increasing pressure
It is well publicised that the NHS is under ever-growing pressure and financial constraints.
The fundamental benefit of a private healthcare policy is that it offers you choices that you would not otherwise have.
PMI allows you to circumvent the NHS for non-emergency medical conditions offering a wider variety of hospitals, practitioners and treatment options.
A general misconception is that private healthcare insurance is very expensive and that it will not cover pre-existing medical conditions. We can confirm that this is not the case.
What are my options?
As a typical retiree, you will normally be faced with one of two options:-
-Do I proceed with a group scheme leaver’s policy?
-Should I self-fund my medical needs?
The answer to the above is individual to each person’s requirements and as part of the service offered by IHCS, they will be able to help you to explore the pro and cons of each option, so that you can make a fully informed decision.
Leaving a company-paid PMI scheme?
As a retiree, you may have had the benefit of a company-paid healthcare insurance policy and therefore it is likely that you will be reluctant to lose the assurance that such a policy provides.
IHCS can provide Group Scheme Leaver options designed to protect your current level of cover and your pre-existing medical conditions with your current insurer.
Subject to your medical history, IHCS can also provide you with options from the wider market that will still cover your pre-existing conditions.
We recommend that private medical insurance should always form a part of your retirement planning. A simple policy based on Core Cover only will cover “in and day-patient” treatment and cancer treatment costs in full (subject to underwriting).
PMI versus NHS and how they compare
If you are a 60-year-old living on the Isle of Man, you can expect to pay around £67 per month for a Core Cover policy with AXA PPP offering the following benefits:-
-Full in-patient and day-patient cover
-Full cancer care – including drugs/ diagnostics/ reconstructive surgery
-£500 annual excess with new moratorium underwriting
The benefit of a PMI policy becomes evident when you compare this with the cost of privately self-funded care. Below are two common conditions, often occurring during retirement and both of which can be treated within a matter of weeks within the Core Cover premium of £67 per month:-
Full knee replacement
NHS treatment time average of 21.3 weeks*
Private treatment cost average £10,468*
NHS treatment time average 18.6 weeks*
Private treatment cost average per eye £2,225*
Sources: LaingBuisson International Limited & NHS Direct
The big C word – would you have cover?
Cancer care, treatment options and waiting times are of paramount concern for everybody especially as we get older. The NHS aims to offer a cancer specialist referral within 2 weeks. Unfortunately, this is not guaranteed and does not account for the required diagnostic tests.
Even the most basic PMI policy will offer the following for less than £90 per month:-
-Rapid access to a consultant
-Diagnostic tests within days
-Access to drugs not guaranteed to be available on the NHS
So, do you need private medical insurance when you retire?
The answer is yes!
Good health should be viewed as the ultimate investment. It is something that you should invest in and protect as much as possible.
For this reason, Private Medical insurance is very much needed when you retire as, ultimately, the benefits that it offers are reassurance and peace of mind should you ever need to use it.