Leaving Workplace Private Health Insurance

Apart from pensions, the main company perk that people appreciate is private medical insurance. Of all the people in the UK who have health cover 85% of them have it via their employer but when they leave their company it can be a shock to discover how much they will have to pay to keep their health insurance policy.

Individual polices are more expensive than company schemes and this fact cannot be avoided. However there are ways to find cheap medical insurance that does not compromise on care.

According to PruHealth 70-80% of people do not make claims on their workplace medical insurance policy. For these people it is easier to obtain lower cost private medical insurance. Additionally, people with a clean bill of health will be optimally placed to have lower premiums.

People who are mid-claim when they leave their employer may have difficulty. Continuation describes the process of transfer from your company medical insurance to an individual policy without re-underwriting. Re-underwriting could increase premiums dramatically and continuation may be the only option for those who are mid-claim.

Not all companies offer continuation for people who are mid claim. PruHealth, for example, does not. Standard Life Healthcare do. Julian Ross, head of policy continuation at Standard Life said, 'People on continuation terms are actually not particularly good business. They may just continue until they’ve finished their claim and then just cancel. But nevertheless it’s something we feel it’s appropriate to offer.'

Continuation is obviously offered to non-claimants too as these are more attractive prospects for health insurance companies. Often for non-claimants, continuation policies offer the best price option although it is still important to compare medical insurance providers to make sure you are choosing the best policy. Bupa has a team that works with group leavers in order to match their needs. Norwich Union Healthcare continuation customers are offered up 45% no claims discounts on their individual policies and Standard Life offer one month's free cover to non-claimants.

For a small extra cost employers may be able to ensure continuation of their employee health care policy after they leave their employment although according to Dave Priestley, sales director at PruHealth, only a very small number of employers take up this option.

Brian Walters, policy advisor for Healthcare Quotations Ltd, said that, 'Many group leavers assume that benefit levels and premiums will be similar to their group policies. So adjusting the client’s expectations is very often the first part of the advisory process.

'Some are confused and overwhelmed having looked at price comparison websites, which are no substitute for a needs analysis and a qualitative market review.'