Excess is the amount of money you need to pay before your health insurer begins to pay for your medical bills. It is an up-front payment that you make when you make a claim. It is usually a fixed amount and is often used to reduce the cost of the policy. Excess is an important part of private health insurance, as it helps to keep monthly premiums down.
How Does Excess Work?
When you take out a private health insurance policy, you will be asked to choose an excess. This is the amount you will be required to pay when you make a claim. For example, if you choose an excess of £500, you will need to pay this amount when you make a claim for medical treatment. After you have paid your excess, your insurance company will pay for the remaining costs of your treatment.
What Types of Excess Are There?
The type of excess you choose will depend on your individual needs and budget. Most insurers will offer two types of excess: a compulsory excess and a voluntary excess. Compulsory excess is the minimum amount you must pay when you make a claim. Voluntary excess is an amount you choose to pay on top of the compulsory excess to reduce your monthly premiums.
What Are the Benefits of Paying Excess?
The main benefit of paying excess is that it reduces your monthly premiums. The higher the excess you choose, the lower your premiums will be. This can be a great way to save money on your health insurance and make it more affordable. As well as reducing your premiums, excess can also protect you if you need to make a claim. Paying a higher excess can help to cover the costs of more serious medical treatments.
Are There Any Downsides to Paying Excess?
The main downside to paying excess is that it can be expensive if you need to make a claim. This is because you will need to pay the full amount of your excess before your health insurer will pay for any of your medical bills. This means that if you need to make a claim, you could be left with a large bill to pay. It is important to consider this when deciding how much excess to choose.
What Should I Consider When Choosing an Excess?
When choosing an excess for your health insurance, you should consider your individual needs and budget. Think about how much you can afford to pay upfront if you need to make a claim. You should also think about how much you can realistically afford to pay each month in premiums. While higher excesses can lead to lower premiums, you should make sure you can afford to pay the excess if you need to make a claim.
Frequently Asked Questions
What is an excess?
An excess is the amount of money you need to pay before your health insurer begins to pay for your medical bills. It is an up-front payment that you make when you make a claim.
What types of excess are there?
Most insurers will offer two types of excess: a compulsory excess and a voluntary excess. Compulsory excess is the minimum amount you must pay when you make a claim. Voluntary excess is an amount you choose to pay on top of the compulsory excess to reduce your monthly premiums.
What are the benefits of paying excess?
The main benefit of paying excess is that it reduces your monthly premiums. The higher the excess you choose, the lower your premiums will be. This can be a great way to save money on your health insurance and make it more affordable.
Are there any downsides to paying excess?
The main downside to paying excess is that it can be expensive if you need to make a claim. This is because you will need to pay the full amount of your excess before your health insurer will pay for any of your medical bills.
What should I consider when choosing an excess?
When choosing an excess for your health insurance, you should consider your individual needs and budget. Think about how much you can afford to pay upfront if you need to make a claim. You should also think about how much you can realistically afford to pay each month in premiums.
Does paying excess reduce my premiums?
Yes, paying excess can help to reduce your monthly premiums. The higher the excess you choose, the lower your premiums will be.
Do I need to pay my excess before my health insurer will pay for my medical bills?
Yes, you will need to pay your excess before your health insurer will pay for any of your medical bills.
What happens if I can't afford to pay my excess?
If you are unable to pay your excess, you may not be able to make a claim for medical treatment. You should consider your budget when choosing an excess to ensure that you can afford to pay it if you need to make a claim.
Will my health insurer cover the full cost of my treatment if I pay my excess?
No, your health insurer will only cover the remaining costs of your treatment after you have paid your excess. Depending on the type of policy you have, your health insurer may not cover all of the costs of your treatment.
Can I change my excess at any time?
Yes, you can usually change your excess at any time. However, this may result in your premiums being adjusted.