Health
insurance makes you eligible for financial assistance
to undergo private treatment
for a range of health-related complaints (‘acute conditions’ according
to insurance providers). These ‘acute conditions’ include
any illness or injury which is short term and curable by
treatment. No insurer will compensate for treatment of
any pre-existing medical condition that you had even before
buying health insurance cover. Also, health insurance will
not cover
any incurable, chronic (long term) illnesses, any GP services
or any accident and emergency admissions.
The premium for health insurance is variable and depends
upon a number of factors.
Whether
you’d be happy being treated in any hospital
chosen by the insurance company or would you prefer to
choose your own hospital and specialist; whether you will
require
cover when traveling; etc. There are so many health insurance products and companies
that you would not know whether you have chosen wisely or
not. You must check what is included and what is not before
you commit yourself to any health insurance policy.
In most cases, the insurance provider will underwrite any
treatment for acute conditions to include diagnostic tests,
surgery carried out as an in-patient or day-patient, and
necessary hospital accommodation or nursing.
There are policies that extend cover to out-patient tests,
consultation and treatment, as well as overseas cover.
Insurance for smokers
Insurance is certainly more expensive for smokers. The average
premium for a smoker is around 65% higher than that for a
non-smoker. That should not be difficult to understand – non-smokers
are generally healthier and live longer.
If
that is the case, you might wonder “what about
those who do not go ‘puff puff’ but go on chewing
wads of tobacco?” Then what… also, about the
3-packs-a-day smoker who quit the habit one year ago?
According
to insurance providers, the definition of a smoker is “a
person who used, smoked or otherwise consumed any kind
of tobacco products during the previous 12 months.”
Some insurance companies have even lengthened the qualifying
period from 12 months to 5 years.
No
doubt, the insurance companies would be willing to insure
you,
but the premium you pay would be higher. This is because
the insurer ‘calculates’ – works out how
long they expect you to live, as they would in a Critical
Illness policy. In a critical illness cover they usually
estimate how likely you are to become seriously ill during
the policy’s term. They take into account a number of
factors like your age, health record, weight and height,
how much you drink, how
stressful your occupation is and whether you smoke.
Typically, an application form for insurance will include
questions about the type and quantity of tobacco products
you use. This information is a vital part of their risk assessment.
This business policy of the insurance companies is often
protested against. Pro-Smoking Pressure Groups have been
insisting that the probability of death is alike for both
smokers and non-smokers in the under 40s age group. Nevertheless,
you will find a typical 30 year old male paying up to 65%
more premium for a 25 year life insurance policy than a
non-smoker of the same age.
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