Self-employed workers, or those with debilitating conditions that don’t receive statutory sick pay, may benefit from health insurance because it fast-tracks treatment. Some insurers also offer a medical advice phone line so you have the option to speak to a nurse. Health insurance can work in tandem with the free care provided by the NHS, which all UK citizens are entitled to, to give patients control over how they are treated. If you’re taken ill with a new condition or have met with an accident, the benefits of relevant life insurance will usually help you.
If you have a pre-existing condition, getting affordable cover can be tricky, but it’s not impossible if you shop around. Changing providers mid- or following treatment can also be problematic, as the illness or injury may become a pre-existing condition in the eyes of your new insurer. If you change jobs or even retire, your relevant life insurance will continue either until you die or your policy comes to an end. Bear in mind that health insurance is very different to a healthcare cash plan, which reimburses appointments and certain treatments at the dentist, optician or physician. Life insurance is not a savings or investment product and has no cash value unless a valid claim is made.
You can also opt to put your life insurance in Trust so you have peace of mind that the payout will go to the people you intend. Many employers choose to provide their employees with a benefits package as a matter of course. This provides a valuable incentive for prospective staff and helps keep current employees healthy and happy. Death in service benefit is a popular addition to an employer’s benefits package and in its simplest form, guarantees a lump sum pay-out to a nominated beneficiary if an employee dies while working for their company.
Sharing the funds:
Life insurance is a similar product that can be taken out solely by a private individual, provided by an employer as part of a group package that covers all staff or via a combination that sees funding shared by both the employer and staff members. Depending on which package you or your employer opts for there can be a great deal of flexibility in the level of cover, as well as how long the cover will last and any extra cover, such as critical illness or the ability to waive your premium.