The difference between health insurance and a health care plan may seem confusing at first however there are a few simple ways to tell the two apart. In a cash health care plan cash is paid out if you are admitted to hospital or need to see a dentist or optician. Cash is also paid out for some alternative therapies such as physiotherapy or acupuncture. The basic idea is that cash health plans are there to help you cope with the cost of general day to day health care.
Cash health plans aim to encourage the policy holder to receive early treatment and resolve any small medical/dental or optical problems quickly. Some plans offer more specific benefits such as home help, follow up treatment or care for illness at home. Some health plans offer other insurance benefits such as critical illness insurance and help towards funeral costs.
Usually this type of plan is paid monthly via direct debit on a rolling contract.
There are lots of differences between a cash health plan and medical insurance. Medical insurance will help pay towards operations and other treatment received which a cash health plan will not. Some people choose cash health plans as they are offered as part of a corporate scheme.
Originally health cash plans were simply there for use in hospital but they have become increasingly popular in recent times. Now cash health plans are aimed at covering the essential health care needed.
There are restrictions with cash health plans as they are in place to help with the cost of treatment rather than actually to provide the treatment, which means you will have to source the treatment yourself.
Most cash health plans will not cover all of your expenses and they do have an annual capped limit. Usually there is a limit of between three to six months before you can begin to claim on the plan. Certain cash plans will not cover you for treatments for pre- existing illnesses you may have had before taking out the agreement.