If you are new to the health insurance industry, it is easy to get weighed down by all the questions and jargon. It can feel like you have a lot to do before you can actually get your policy.

One thing that many people get confused about is an excess. Is this something that is really necessary? Will it actually reduce your health insurance costs? Nobody tells you about these things before you get a policy. So, we have created a guide on what you need to know.

What is an Excess?

First, you must understand what an excess is. This is something that you will definitely come across when you are shopping around for health insurance. Essentially, this is the amount of money you are going to pay when you first make a claim. It will be decided in advance so you know what it is. Then, the remainder of your treatment will be paid by the health insurance provider.

For example, say you get surgery that is worth £3,000. You make a claim on your health insurance so that this amount can be covered. Your policy has an excess of £250. Therefore, you are going to pay £250 and the health insurance company will pay £2,750.

Note that some health insurance policies will ask you if you want to have an excess. Then, they allow you to choose the amount. This could be anything from £100 to £5,000. Then, there are other policies where a certain amount is compulsory to enjoy a policy. Others will allow you to forward with your policy by having no excess. If you want to find the best private health insurance UK policies, you can head over to Usay Compare. They will give you a free quote so that you can see your options on a policy. This includes policies from market-leading providers.

Does an Excess Reduce Your Health Insurance Cost?

You are probably wondering how an excess fits into saving money on health insurance. Well, it does have this ability, depending on the policy you have. Generally, if you have a low access, you will have higher health insurance payments every month. You are choosing to cover this cost of a claim in advance. Alternatively, if you choose to have a high excess, this is a way to lower your monthly premiums. You enjoy the same cover, you are just choosing to pay more money later on.

Therefore, know that an excess can reduce your health insurance cost. But, something you have to make sure of is that you will be able to pay this amount later on if you need to. For example, you do not want to select a high excess just to lower your premiums right now. Later on, you might be in a position where you cannot afford the high excess you set. Then, you will not have a successful claim. You need to think carefully about your budget and what you can afford comfortably.

Are There Other Ways to Reduce Your Health Insurance Premium?

Yes, there are tactics you can use to reduce the cost of your health insurance policy. You just have to do this carefully before you commit to the policy with your chosen provider. Here are some tips.

Pay Annually If You Can

You get the choice to pay annually or monthly for your health insurance policy. Most people automatically choose monthly since it is smaller payments spread out through the year. But, did you know that some providers offer you a discount if you pay annually? This can mean you reduce the price just by paying all at once. Yes, you have a larger amount to pay, but it does allow a discount on the entire price, which can make a big difference to your budget.

Remove Optional Extras

Perhaps optional extras have been added to your policy during the creation stage. You might not have noticed them, yet they are adding money to your health insurance. For example, this could be covered for travelling abroad or for dental treatment. Either way, if you do not deem them important, you can remove them from your policy. You should see a reduction in the cost you are paying for the policy when you do this.

Only Claim When Necessary

If you want to save money on your health insurance premiums in the future, try to make claims on your policy as few times as possible. Each time you make a claim, this is going to add to your policy. As a result, when you go to renew, the price will be higher. So, make sure that you are only claiming when it is completely necessary. In other words, this should be for large amounts of money. Then, you might also gain access to a no-claims bonus.