How to Choose the Right Health Insurance Excess

Choosing the right health insurance excess can feel like navigating a maze—especially when jargon, numbers, and policy fine print come into play. Whether you're purchasing private medical insurance for the first time or reviewing your current policy, understanding how excess works is crucial.

As a UK-based medical insurance broker, I help clients every day to find the right balance between cost and cover. In this post, I’ll break down what an excess is, how it affects your premiums, and why working with a broker can simplify the entire process.

🧾 What Is a Health Insurance Excess?

A health insurance excess (known as a deductible in some countries) is the amount you agree to pay out-of-pocket before your insurer begins covering eligible medical costs. This could be applied:

• Per policy year

• Per condition

• Or per claim, depending on your insurer

Example: If you have a £250 excess and your treatment costs £1,000, you’ll pay the first £250, and your insurer pays the remaining £750—assuming the treatment is covered under your policy.

💡 Why Excess Matters

Your choice of excess directly impacts:

• Your monthly or annual premium – A higher excess generally reduces your premiums.

• Your out-of-pocket expenses – A lower excess reduces how much you pay when you claim.

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❓ Questions to Ask Before Choosing an Excess

1. How often will you use your insurance?

• If you’re generally healthy and don’t anticipate many claims, a higher excess may reduce your overall costs.

• If you have regular medical needs, a lower excess could save money in the long run and offer more predictable outgoings.

  
  

2. What can you comfortably afford to pay upfront?

Can you afford £500, £1,000, or more in a medical emergency without financial strain? Your excess should reflect an amount you can comfortably pay without stress.

3. Are you using other ways to manage cost?

Some insurers offer:

• Six-week wait options

• Outpatient benefit limits

• Defined hospital lists

A broker can help you combine these options to build a policy that fits your budget—without relying solely on a high excess.

🤝 The Broker Advantage

While online comparison tools may provide quotes, they often miss the bigger picture. Here's why working with a health insurance broker can be a game changer:

✅ Tailored, Impartial Advice

As a broker, I’m not tied to any one insurer. I help you compare multiple providers to find an excess level and plan structure that fits your health, lifestyle, and financial preferences.

✅ Insider Knowledge

We know which insurers:

• Offer flexible excess structures

• Provide split excesses (e.g. inpatient vs outpatient)

• Are most competitive for certain age groups or conditions

This kind of insight isn’t usually available from direct-buy platforms.

✅ Ongoing Support

Our support doesn’t end after you purchase a policy. We provide:

• Help with claims

• Annual policy reviews

• Guidance if your needs or budget change

  
  

✅ Clear Explanations

Policy language can be confusing. A broker makes sure you understand the difference between:

• “Per policy year” vs “per condition”

• How and when the excess is applied

• Which services may be exempt from the excess altogether

  
  

👨‍👩‍👧 Real-Life Example

Let’s look at two typical clients:

• Client A: A healthy, self-employed professional in their 40s who rarely uses private healthcare. I helped them choose a higher excess to reduce their premiums.

• Client B: A parent of two who values quick access to care. We selected a lower excess with enhanced outpatient cover for peace of mind and convenience.

Both ended up with well-suited policies—demonstrating that the right excess depends entirely on personal circumstances.

📝 Final Thoughts

Choosing the right excess is about balancing cost, peace of mind, and expected usage.

Comparison websites might show you prices, but they can’t explain the finer details or help you build a policy that really fits your needs. That’s where a broker steps in—not just to save you money, but to ensure you’re truly covered in the way you need.

📞 Ready to Get Started?

If you’re not sure which excess is right for you—or just want professional guidance—get in touch today on 03300 100 441 for a free, no-obligation consultation.