Wednesday, 4 May 2016

Medical insurance costs less than you expect

One of the issues that arises when speaking to clients is obviously the price of private medical insurance, particularly when talking to clients buying the cover for themselves. One clearly needs to justify the cost from most clients monthly budgets as part of the sales process to demonstrate the value of what they are looking to buy (or trying to get out of signing up for).

So lets consider : The price of a cappuccino each day is perhaps £ 3.00 for a medium cup from Starbucks or Costa and that means (assuming you work 20 days a month) a cost for coffee alone of £ 60 per month - how does that compare to the cost of medical insurance, surely a more vital and important purchase to make ......

STOP ....... what a trite and condescending comparison the old 'coffee a day trick' is. It's also an easy blog post for the writer to make a point without having to really think about the actual cost or meaning of medical insurance.
When I was thinking about the concept for this post I got to thinking about what the closest comparable product or service one could use as a comparator against medical insurance. Initially one perhaps thinks about the cost of life insurance or even house and contents insurance - neither are 'required' or mandatory like PMI but both sensible to have for most people. Of course though, neither insurance actually makes you better when you're ill. The comparison then does fall down a little but especially as in fact generally both of those insurances will be less costly per month for the average person.

Lets look at this from another angle - do you have dog or a cat ? Well I have two of the former and one of the latter (2 dogs and a feline) :
Jasper - King of Spaniels

Muffin - Cocker De Spaniel

Molly Pussy Cat
 Now Jasper is 11, Muffin around 13 and the cat around 12 and all three of them have had pet insurance since they came to us. As pet insurance is in fact just people medical insurance payable to vets I think it makes a good comparator to our PMI plans - cover is usually structured slightly differently to take into account that there really is no secondary care system for pets and everything treatment wise (pretty much) is done by the primary care vets but other than that it really is just medical insurance rebranded and with different benefit limits.

So for my pets I pay the following :

Double Dog cover (with Tesco Bank) : £ 114.73 per month

The Cat is with Sainsbury Bank paying : £ 18.72 p.m.

Setting up a new personal PMI plan for a young family will probably not be too dissimilar in overall cost to the above prices, possibly a bit less in fact - so if you are thinking about splurging and buying personal PMI cover perhaps think about the amount you pay towards your pet insurance as the comparable starting point for how much you might consider paying.

Either way, don't feel too guilty about that Costa !

If you'd like help with any aspect of Medical insurance, group or personal just get in touch.

Phil Knight
Independent Healthcare Consultant
07792 075748

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