Health Insurance comes with a lot of different terms to understand, excess is a big part of a health insurance policy and an important one to understand.
A simple way to explain excess, is that it is the amount you agree to pay towards a claim before your insurer contributes.
It’s important to choose the right excess for you, it can help to ensure premiums and out-of-pocket expenses are affordable and within your budget.
If you would like to talk through excess and the best policy to suit you with our expert advisers at Usay Compare, the service is completely free of charge with no obligation, just call us on: 01285 864670
An excess is the amount of money you volunteer to pay towards the first part of any claim, and the insurer will pay the rest towards the claim.
It's considered a cost-sharing arrangement between you and your insurer, and choosing a higher excess can make your premium more affordable.
You only need to pay your excess if you need to make a claim. You may find with some insurance policies, you can have an excess of £0, which means you don’t need to pay towards the claim, however you will likely pay higher premiums.
For example, if your excess is £250 and your treatment costs £2,000, you'll pay the first £250 and your insurer pays the remaining £1,750.
You’ll start by choosing an excess at the time you take out your cover. Different health insurance providers have different excess levels, these are most commonly between £0 and £1,000, with some insurers having excess options of up to £5,000.
Typically a higher excess can make your premiums lower, due to the fact you’d be paying more towards the claim, meaning the insurer pays out less.
This would mean lower premiums. Whilst that can make a policy more affordable if you don’t claim, it's recommended to be prepared and be sure you can pay the excess you agree to without it affecting you financially.
Having a lower excess means your monthly or annual premium will be higher. This option can be beneficial if you want peace of mind there is less to pay out-of-pocket if you do need to make a claim.
Hopefully, you'll stay in good health and won’t need to make a claim, however, if you do, this is when you'd need to pay the excess.
The claims process varies depending on insurer but typically follows these steps:
Visit a GP (in-person or digitally)
Get a referral
Contact your insurer to approve the claim
Have the required treatment
Pay any excess agreed, your insurer will usually contact you to collect this.
Learn more about the claims process.
The final step is the insurer paying the remaining eligible costs. The insurer should manage the claim and pay what isn’t covered by your excess, keeping you updated along the way.
An excess in health insurance has many purposes, some of the most common reasons include:
There are two common health insurance excess options to be aware of, and understand how they can affect your policy.
A per claim excess is what you pay each time you make a claim. For example, if you needed to claim twice in your annual policy, you’d pay the same agreed excess for each claim you needed to make.
If you’re lower risk or less likely to make a claim, this can be the better option, as your premiums will be lower. Of course, the downside is that you can’t predict your future health outcomes, and if you do need to pay multiple claims it means more out-of-pocket expenses.
You could have an annual excess. This is paid once per policy year regardless of how many claims you make.
This works by only paying the excess for the first claim you make, if you then need to claim for further treatment or for a different procedure, you don’t need to pay again.
This choice can be beneficial if you expect to claim more or want peace of mind you don’t have to pay your excess multiple times, however, it can mean your premium is higher.
Taking out a policy with the support of a free expert adviser ensures you know exactly what you’re covered for. You can have confidence in understanding your excess options and an adviser can help you to find the most suitable excess options to meet your needs and budget.
Generally, yes. However, it’s worth considering your budget and what you’re willing to pay out-of-pocket.
Having a higher excess can mean you pay lower monthly premiums, which can make having health insurance and peace of mind much more affordable.
It does mean though if you do need to unexpectedly claim, you want to be sure you can afford those expenses. Having a lower premium could mean you put away extra savings to be sure you can cover the excess. Then if you don't need to claim you can benefit from the lower premium.
It’s all about weighing up your individual budget and circumstances to find the most suitable policy.
It can be overwhelming to know which excess to choose and what will work best for you in the long run. Here’s a few things to consider when deciding what excess to choose on your policy.
Could you comfortably afford the excess if you needed treatment soon? Or would it affect your financial stability?
What current condition is your health in? Whilst this can be a good indicator to know if you’d expect to claim, it’s important to remember even in good health, unexpected illnesses or injuries can arise at any time.
You can work with a health insurance expert to understand how much you’d save on your policy vs the excess amount. This can help you to make a decision on what’s most affordable and suited to you.
Don’t automatically choose the highest excess, but consider what you could genuinely afford if you needed treatment.
A quick guide to looking at the pros and cons of choosing a higher excess on your health insurance policy.
No, excess isn’t always compulsory, it depends on the insurer and policy you choose. However, when choosing to take out a health insurance policy with Usay Compare, you'll only have the option for a voluntary excess.
Yes, you can change your excess when you are renewing your policy. Whether you choose to stay with the same insurer or move to a different one.
It’s worth noting that if you do change provider at renewal, their excess options may differ by amounts, and any compulsory excess value.
Different providers will have different excess options. It’s worth understanding what’s available with each provider and how it would suit you. Speaking to an expert health insurance adviser can help.
No, an excess does not automatically apply to every single treatment or claim; how it works depends entirely on your specific policy rules and provider. For example, if you have a per year excess, it will only apply to the first treatment or claim.
Excess is one of the biggest factors that affects the cost of private health insurance. The right excess depends on balancing affordability now, with potential future costs.
Overall, choosing your excess needs to come down to your personal circumstances and budget and be sure it benefits you or doesn’t leave you financially uncomfortable.
This is where using a health insurance intermediary, like Usay Compare, can help. They’ll do all the hard work of comparing for you and be able to understand what's important to have cover for in your policy.
The service is completely free of charge, with no obligation.
Get in touch with our expert team today: 01285 864670