Health Cash Plans - Pros and Cons
Cash to Help with Dental Care, New Glasses & Alternative Therapies
Mar 11, 2009
Health cash plans are a means of budgeting for modest medical expenses. Depending upon the premium level chosen, health cash plans help with the cost of dental care, alternative therapies, new glasses, acupuncture, physiotherapy and osteopathy. If financial assistance is needed, a claim can be registered and a cheque will be sent to help cover the cost.
Advantages of Health Cash Plans
- No medical check-up. Unlike private medical insurance, health cash plans don't require a full medical check-up;
- Help with medical costs. Health cash plans assist with medical expenses, such as: dental care, new glasses and alternative therapies;
- Budgeting. Paying a premium level of just £10 to £20 per month for a health cash plan is often better than receiving a one-off bill for several hundred pounds for new glasses or dental care;
- Peace-of-mind. A health cash plan means that someone can afford to get medical treatment or new glasses. Many people have to struggle on without these things due to affordability;
- Variety and choice. Certain plans are weighted in favour of medical treatments, such as alternative therapies. This allows families to choose the most appropriate health cash plan for their needs;
- Free children's cover. Health cash plans generally provide cover for children free-of-charge when a parent signs up for cover.
Disadvantages of Health Cash Plans
- Additional monthly expense. Paying an additional monthly premium isn't currently affordable for many families. Low income families often take out a health cash plan when they are already entitled to state assistance;
- Complexity. It can be very difficult to calculate which company is offering customers the best deal on health cash plans. If someone is more likely to need new glasses than alternative therapies, it is best to seek the one that offers the best deal in that area;
- Uncompetitive deals. Certain health cash plans don't offer a good deal to customers. Moneysavingexpert.com criticised the plan offered by HSA, claiming that it offered customers poor value for money;
- Three month wait prior to claiming. All health cash plans require that members wait a minimum of 3 months prior to making a claim;
- No claim made. There is no refund should someone not make a claim on their health cash plan;
- Confusion. Health cash plans should not be confused with other insurance policies. Seek guidance in relation to other forms of insurance, including private medical insurance and critical illness insurance.
According to Laing & Buisson, there were 2.8m health cash plans in Britain at the start of 2006, covering 4.7 million people. A health cash plan is not an alternative to private medical insurance. The premium level chosen will determine how much cover is given in respect of: dental care, alternative therapies, new glasses, acupuncture, physiotherapy and osteopathy.
Those that found this article useful may also be interested in taking out critical illness insurance or life insurance to protect their families. Taking out pet insurance can, in certain instances, help save families thousands of pounds in veterinary bills.
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