What Are Health Cash Plans And Should You Get One?

In Family, Healthcare, Individual by Tom McGuinness

If you’re the type of person who frequently spends money on routine medical costs, such as prescriptions or dentist and opticians appointments, a health cash plan could help you save money. Unlike most other insurance products that cover unforeseen events, health cash plans help you spread the cost of routine healthcare.

What are health cash plans?

In short, a health cash plan is a scheme where you pay a monthly fee to have your routine medical expenses covered (up to a limit). For instance, you could take out a health cash plan for £240/year (£20 per month) that includes £300 for optical costs and £300 for dental costs. Then, when you have an opticians appointment or dentist appointment, you pay for it and claim the money back via your health cash plan.

So, in the example given above, provided you maxed out both the optical and dental allowances, you would be £360 better off each year. Health cash plans also cover chiropody, teeth whitening, therapy treatments, homeopathy, acupuncture, massages, maternity/paternity/adoption, day surgery and more.

As we have already mentioned, health cash plans are not the same as health insurance, and you can have both at the same time if you want. While typical health insurance usually covers you for treatment of conditions that develop after you take out the plan, a health cash plan reimburses you for ongoing and routine treatments.

Another factor to consider is that health cash plans can be used alongside the NHS. So if you live in a part of the UK where you still have to pay for prescriptions, eye tests and dental treatment, a health cash plan could help to fund these types of routine expenses.

Do you need a health cash plan?

The answer is, it all depends on how much money you spend on routine healthcare costs. Health cash plans can be very worthwhile and save you significant sums as long as you make use of them.

Here are some points to consider:

  • It’s all about the numbers: Work out how much you’ll pay in and how much you’ll get back annually.
  • Check you’re not already covered: Health cash plans and similar products are often offered by employers, so you should check you don’t already have cover in the first instance.
  • Remember to claim: Health cash plans are only beneficial if you remember to keep your receipts and actively make claims.
  • Self-insurance is an option: Regular deposits into a savings plan could provide enough cover for your routine health costs, without the annual plan payments.

As with most financial products, different health cash plans cover different things, so ensure you choose one that is right for your situation and needs. For example, if you have perfect vision and have never worn glasses or contact lenses, a large optical allowance probably isn’t going to be necessary.

Interested in learning more about health cash plans and discovering the options that are available to you? Contact us today and we’ll happily answer any questions you have.

Tom is the Sales Director for Premier Choice Group. In his role, Tom oversee’s growth across all areas of the business while maintaining a small number of his own clients. At Premier Choice, Tom and the team deliver a unique, personal service to every client, while growing the business and maintaining a strong reputation as the UK’s best intermediary.